Competition Economics assists the Canadian Competition Bureau in obtaining a consent agreement with Loblaw Companies Limited

CE Academic Affiliate Prof. Guofu Tan and CE staff, led by Director Michael A. Williams, assisted the Canadian Competition Bureau in analyzing Loblaw Companies Limited’s (“Loblaw”) proposed acquisition of Shoppers Drug Mart Corporation (“Shoppers”) for $12.4 billion (Canadian dollars). On March 2014, the Competition Bureau reached a Consent Agreement with Loblaw. The agreement will require Loblaw to sell certain retail stores and pharmacies within a Loblaw store to an independent operator, along with certain other restrictions. In its review of Loblaw’s proposed transaction, the Competition Bureau determined that absent the Consent Agreement, the takeover of Shoppers “would likely have led to increased prices, decreased service, and less product variety and innovation.”

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