Loblaw buying Shoppers Drug Mart in $12B deal
NEW YORK (AP) -- Canadian food and drugstore operator Loblaw Cos. is buying Shoppers Drug Mart in a cash-and-stock deal valued at about 12.4 billion Canadian dollars ($12 billion).
The deal would give Loblaw access to the growing small-urban store segment. Shoppers Drug Mart shareholders will own about 29 percent of the combined company.
Loblaw will pay 33.18 Canadian dollars in cash and 0.5965 of its shares for each share of Shoppers Drug Mart Corp. This comes to 61.54 Canadian dollars per Shoppers Drug Mart share.
Shoppers Drug Mart stockholders can choose 61.54 Canadian dollars in cash or 1.29417 Loblaw common shares plus a penny in cash for each share they own.
The maximum amount of cash to be paid by Loblaw will be about 6.7 billion Canadian dollars and the maximum number of Loblaw shares to be issued will be approximately 119.9 million.
The deal is expected to close in six to seven months.
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