Metro in talks with Jean Coutu about probable merger
Grocery hulk Metro says it is “engaged in disdainful discussions” regarding a probable partnership with a Quebec-based Jean Coutu pharmacy chain.
Metro announced Wednesday a dual are deliberating a understanding in that it would acquire Jean Coutu during a cost of $24.50 per share, to be paid 75 per cent in money and 25 per cent in shares.
- Grocery prices set to deflate, Loblaw and Metro say
- Jean Coutu profit drops 10% on increasing costs
The price was determined in “the march of negotiations” between a dual firms forward of a non-binding minute of vigilant antiquated Aug. 22, Metro added.
“The Coutu family has indicated a goal to support a due transaction,” Metro pronounced in a press release.
Earlier Wednesday, regulators dangling trade of both Jean Coutu and Metro, led by boss and CEO Eric La Flèche.
The Investment Industry Regulatory classification of Canada pronounced during 9:29 a.m. it was putting a proxy hindrance to trade in Jean Coutu, and dangling Metro trading 6 mins later.
- Metro distinction beats estimates notwithstanding reduce produce, meat, dairy prices
- Jean Coutu profit dips to $54 million
Metro combined that both firms will not criticism any further, though will warn stakeholders and a open of poignant developments per a due merger.
Investors reacted definitely to a news, with Jean Coutu shares jumping 6.11 per cent to $24.50Â and Metro shares climbing 4.24 per cent to $41.79.
Jean Coutu has some-more than 400 stores in Quebec, New Brunswick and Ontario. Metro has some-more than 600 stores in Quebec and Ontario.
In Jan 2013, when Metro done a warn proclamation that it was offered 48.2 per cent of a 25-year investment in preference store user Alimentation Couche-Tard, attention observers speculated the grocer was eyeing an merger or looking to prerogative a shareholders.
Analysts during a time suggested Jean Coutu could be a contender.
After grocery hulk Loblaw finished a $12.4-billion merger of Shoppers Drug Mart in 2014, there was some-more conjecture about what Jean Coutu’s pierce would be in response.
Article source: http://www.cbc.ca/news/business/metro-jean-coutu-1.4309175?cmp=rss