Under pressure from powerhouses Wal-Mart and Target, Loblaw Companies, Canada’s largest food retailer, announced Monday that it will buy Shoppers Drug Mart for $12.4 billion in cash and shares, with firms Torys LLP, Borden Ladner Gervais LLP, and Osler, Hoskin & Harcourt LLP advising the retail giants.
Shoppers Drug Mart, Canada’s biggest pharmacy chain, saw its stocks jump 27 per cent on the TSX after the Loblaw bid. Loblaw Companies shares rose 8 per cent by mid-day.
On the legal end of the big deal, Torys LLP represented Loblaw with a team that included Peter Jewett, Cornell Wright, Raegan Kennedy, Adrienne DiPaolo and David Forrester (M&A), Tom Zverina, Adam Delean and Adrienne Glen (lending), James C. Tory and Andrew Gray (litigation), Mitch Frazer and Lynne Lacoursière (pension & employment), Jay Holsten and Omar Wakil (competition), Conor McCourt (intellectual property) and John Unger (tax). Borden Ladner Gervais LLP also advised Loblaw, with a team that included Robert S. Russell, Denes Rothschild and Zirjan Derwa (corporate commercial).
Osler, Hoskin & Harcourt LLP served as legal counsel to Shoppers Drug Mart with a team that included Clay Horner, Douglas Bryce, Emmanuel Pressman, Donald Gilchrist, David Vernon, and Alex Gorka (corporate), Peter Glossop and Shuli Rodal (regulatory), Firoz Ahmed, Amanda Heale and Dov Begun (tax).
Davies Ward Phillips & Vineberg LLP is acting for Bank of America Merrill Lynch as lender and financial advisor to Loblaw, with a team that includes Patricia Olasker and Steven Harris (corporate); and Carol Pennycook and Derek Vesey (financing).
The takeover is the largest in Canada since Chinese CNOOC Ltd. took over Calgary oil and gas producer Nexen Inc. for $15.1-billion in February.
- Ahmad Hathout