October 31, 2014 — OTTAWA, ON — Competition Bureau
The Competition Bureau announced today that it has approved the sale by Loblaw of ten Shoppers Drug Mart stores: seven will be sold to independent pharmacists operating under a McKesson banner and three will be sold to Pharmasave Drugs (Atlantic) Ltd. These transactions result from the March 2014 Consent Agreement between Loblaw and the Bureau relating to Loblaw’s acquisition of Shoppers Drug Mart. The transactions will preserve competition in the retail sale of pharmacy products and drugstore-type merchandise in Canada.
Under the terms of the Consent Agreement, the following locations will be sold to McKesson-bannered independent pharmacists:
|Aylmer, ON||Shoppers Drug Mart Aylmer, 6 Talbot Street East|
|Chelmsford, ON||Shoppers Drug Mart Chelmsford, 3672 Highway 144|
|Exeter, ON||Shoppers Drug Mart Exeter, 38-44 Thames Road West|
|Mount Forest, ON||Shoppers Drug Mart Mount Forest, 129 Main Street South|
|Petrolia, ON||Shoppers Drug Mart, 4177 Petrolia Street|
|Innisfail, AB||Shoppers Drug Mart Henday Centre, 4804 50th Street|
|Westlock, AB||Shoppers Drug Mart Simply Pharmacy, 10030 106 Street|
The following locations will be sold to Pharmasave Drugs (Atlantic) Ltd.:
|Barrington Passage, NS||Shoppers Drug Mart, 22 Highway 330|
|Tantallon, NS||Shoppers Drug Mart St. Margaret’s Crossroads, 5181 Saint Margaret’s Bay Road|
|Montague, PEI||Shoppers Drug Mart Montague, 521 Main Street|
When conducting its review of Loblaw’s acquisition of Shoppers Drug Mart, the Bureau examined the level of retail competition in each and every market where both a Loblaw-owned grocery store and a Shoppers Drug Mart were present. Competition concerns were identified in 27 markets. Including the current ten sales, a total of 14 stores and 9 in-store pharmacies have been sold. The four remaining Shoppers Drug Mart stores must be sold to new owners that will continue to operate them as the agreement does not permit Loblaw to simply close them.
Competition generally leads to lower prices for consumers, as well as more consumer choice, a wider range of service options and increased innovation.
- McKesson sells and delivers directly to over 7,000 pharmacies and runs a banner program for independent pharmacists under the IDA, Guardian, Proxim, Medicine Shoppe, Associated Retail Pharmacy and Family Health Care Pharmacy banners which includes over 2,000 locations in Canada.
- Pharmasave Drugs (Atlantic) Ltd. is a group of independently owned pharmacies operating in all four Atlantic provinces and is part of the Pharmasave system, which has more than 500 member pharmacies across Canada.
- Mergers in Canada are subject to review by the Bureau under the Competition Act to ensure that they will not result in a substantial lessening and/or prevention of competition.
- The merger review process involves collecting information from, and conducting interviews with, a wide range of industry participants, including the parties, suppliers, competitors, customers and industry experts.
- Competition Bureau Reaches Consent Agreement in Loblaw/Shoppers Deal
- Previous announcement: Competition Bureau approves the sale of 13 Loblaw-owned stores and pharmacies to Metro, Jean Coutu and Remedy’s
- Position Statement: Competition Bureau Review of the Proposed Acquisition of Shoppers Drug Mart Corporation by Loblaw Companies Limited
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Le Bureau de la concurrence, en tant qu’organisme d’application de la loi indépendant, veille à ce que les entreprises et les consommateurs canadiens prospèrent dans un marché concurrentiel et innovateur.