December 2, 2014 — OTTAWA, ON — Competition Bureau
The Competition Bureau is protecting competition in three communities by approving the sale by Loblaw of three Shoppers Drug Mart stores: two were sold to Pharmx Rexall Drug Stores Ltd. (Rexall) and one was sold to an independent pharmacist operating under a McKesson banner. 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 have been sold to Rexall:
Shoppers Drug Mart Southport Common, 180 Miquelon Avenue
Shoppers Drug Mart Trail Bay Mall, 5740 Teredo Street
The following location has been sold to a McKesson-bannered independent pharmacist:
Shoppers Drug Mart Main & Wigle, 271 Main Street East
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 three sales, a total of 17 stores and 9 in-store pharmacies have been sold. The remaining Shoppers Drug Mart store must be sold to new owners that will continue to operate it as the agreement does not permit Loblaw to simply close it.
Competition generally leads to lower prices for consumers, as well as more consumer choice, a wider range of service options and increased innovation.
- Rexall and Rexall Pharma Plus pharmacies are supported by over 9,000 employees in 457 pharmacies across the country.
- 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.
- 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 ten Shoppers Drug Mart stores to McKesson and Pharmasave
- 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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The Competition Bureau, as an independent law enforcement agency, ensures that Canadian businesses and consumers prosper in a competitive and innovative marketplace.