For the exclusive use of A. Chhabra, 2020. W14251 1 LOBLAW AND SHOPPERS DRUG MART Leanne Bowden wrote this case under the supervision of Professors Mary Gillett and Christopher Sturby solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e)
[email protected]; www.iveycases.com. Copyright © 2014, Richard Ivey School of Business Foundation Version: 2018-03-19 INTRODUCTION In mid-2013, Galen G. Weston Jr., executive chairman of Loblaw Companies Ltd. (Loblaw), was considering whether it was in his company’s best interest to acquire Shoppers Drug Mart (Shoppers). Shoppers had often been viewed as an attractive acquisition target and a vehicle for future growth. With the recent spin-off of some of Loblaw’s real estate assets and with Shoppers’ shares currently trading at an historically attractive valuation, Weston wondered whether now would be the right time to make an offer and at what price. LOBLAW Loblaw Groceteria was founded in 1919 when Toronto grocers Theodore Pringle Loblaw and J. Milton Cork opened the first self-serve retail grocery store in downtown Toronto, Ontario.