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Product cover image for Loblaw Companies Limited - Acquiring Shoppers Drug Mart

Loblaw Companies Limited - Acquiring Shoppers Drug Mart

James E. Hatch; Gina Kalboneh

Product #:9B15N006
Supplier:Ivey
Discipline:Finance
Setting:Canada, 2013
Details:Case (PDF) • 12 pages • 2015-05-06 (Rev: 2015-06-30)

Subjects:

Finance and investing

Industries:

Goods, trade, and consumer services

Geography:

CanadaNorth America
Your Price:$10.54

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The equity analyst for a large investment bank is in the process of evaluating a potential takeover of Shoppers Drug Mart, Canada’s largest drugstore retailer, by Loblaw Companies Limited, Canada’s largest grocery retailer. Rumours of the takeover have been circulating for some time, and the analyst wants to provide her buy-side clients with both her comments on the proposed transaction and her assessment of a reasonable offering price.

Learning Objectives

  • How to assess the strategic implications of an acquisition including the challenges of implementation.
  • How to value an acquisition target employing the discounted cash flow method and the comparables method.
  • The factors to consider when choosing the method of financing an acquisition.
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    Case Study: Loblaw Companies Limited - Acquiring Shoppers Drug Mart (English version) | Ivey Publishing