The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Domenic Pilla, left, president and CEO of Shoppers Drug Mart, Galen G. Weston, executive chairman, Loblaw Cos. Ltd. and Holger Kluge, chairman of Shoppers, speak to the press at the Design Exchange in Toronto during a news conference announcing Loblaw’s acquirition of Shoppers for $12.4-billion in cash and stock.
Domenic Pilla, left, president and CEO of Shoppers Drug Mart, Galen G. Weston, executive chairman, Loblaw Cos. Ltd. and Holger Kluge, chairman of Shoppers, speak to the press at the Design Exchange in Toronto during a news conference announcing Loblaw’s acquirition of Shoppers for $12.4-billion in cash and stock.
(Philip Cheung for The Globe and Mail)

Banks’ willingness for risk made Loblaw deal possible

As little as 10 months ago, the idea of Loblaw Cos. Ltd. buying Shoppers Drug Mart Corp. was pretty much out of the question.

No matter how much Loblaw boss Galen Weston Jr. might have wanted the pharmacy chain to add a little growth to his grocery empire, and by all accounts he has had his eye on Shoppers for a long time, he didn’t have the currency. It’s a strange thing to say about the scion of one of Canada’s richest families, but the numbers just didn’t work.