Montreal-based Metro Inc. announced Tuesday it’s in “exclusive” talks
with the Jean Coutu Group on the possibilities of a $4.5-billion cash-and-stock
takeover.
It would give Metro 418 drugstores to add to the 250 it already owns and
its more than 600 grocery stores which includes Food Basics.
A non-binding letter of intent calls for Metro to buy all shares of
Coutu for $24.50 a share; 75 per cent would be paid in cash and 25 per cent in
Metro shares.
The Coutu family, which holds control of the Jean Coutu Group, has
“indicated its intention” to support the proposed deal, the companies said.
A deal, if completed, would give Metro a chain of 418 drugstores.
The proposed deal still depends on negotiation of “definitive
agreements” which, if reached, would also be subject to the usual regulatory approvals.
The two companies emphasized there’s “no guarantees” a deal will close.
Metro is Canada’s third-largest supermarket chain. Loblaws, which is
first, bought Shoppers Drug Mart chain in 2014 and Sobeys, which is second,
bought the Safeway supermarket chain which is the leader in many parts of
Western Canada.
