Description: Loblaw, Canada’s largest grocery chain is all set to acquire Canada’s largest pharmacy chain, Shoppers Drug Mart for $11.9 billion. This is the second major deal in this sector in recent months: lately, Sobeys acquired Safeway for $5.8 billion.

Source: Dealbook

Date: July 15 2013

Link:  http://dealbook.nytimes.com/2013/07/15/loblaw-to-buy-shoppers-drug-mart-in-canada/

Questions for Discussion:

1. What are some of the factors that triggered Loblaw to acquire Shoppers?
2. How do Loblaw and Shoppers benefit from this deal?
3. What would be the effects of this acquisition for consumers?
4. How would the competitors react to this acquisition?