Loblaws and Shoppers Divestitures Approved
August 16th, 2014
The Competition Bureau has approved plans by Canadian grocery giant Loblaw Companies Limited to divest nine in-store pharmacies to Remedy’s Rx, two grocery stores to Metro Inc., and two Shoppers Drug Mart pharmacies to the Jean Coutu Group.
The divestitures are pursuant to a March 2014 Consent Agreement between Loblaw and the Commissioner of Competition that resolved the Bureau’s concerns with Loblaw’s acquisition of Shoppers Drug Mart Corporation.
Loblaw still has to sell another 14 stand-alone retail outlets, as the Consent Agreement does not permit them simply to be closed. The Bureau expressed the hope that these divestitures will remedy the impact of the merger on both price and non-price elements of competition in these markets.