"They're lucid enough to see that the future was not as bright as the past the person said.
"This decision is something we have to do to improve the situation.".
Cost savings from the deal are estimated at 75 million over the next three years.
"Size does matter in our industry Eric La Flèche, Metro's chief executive, said.
Valid only on October 20 and 21, 2018.It took nearly half a century for Jean Coutu to build a pharmacy retail empire that enjoys unparalleled brand trust with consumers and the industry's highest sales per square foot in North America.The combination gives the companies more heft, increased operational efficiencies and a more diverse revenue stream to meet the evolving competitive landscape, executives with the chains said.Peter Chapman of grocery consultancy GPS Business Solutions said Metro and Jean Coutu fit well together, both being highly recognizable brands in Quebec looking to gain more economies of scale.Savings from eliminating redundancy from such areas as procurement, distribution, staff and public-company costs could be as high as 100-million, which would boost earnings per share,.The cost of buying the Jean Coutu Group was high but the pill wasnt too difficult to swallow because it will generate a good return on the investment, Metro Inc.La Fleche told reporters that not only was Jean Coutu one of the last assets available, it was the best.The bonus offer applies to the total number of basic miles received.Nattel said Metro could add.8-billion of debt to its balance sheet to reach a leverage of 3.5-times, based on her pre-synergy ebitda forecast.25-billion from the combination of the two companies.Jean Coutu's Class A warm home discount scheme scottish power telephone number stock has risen more than.3 per cent since the beginning of 2017, while Metro's shares have gained.59 per cent in that period.The companies began exclusive talks earlier this year that led to Monday's agreement, company executives said.
Irene Nattel, retail analyst at RBC Dominion Securities, said Metro's.50 (Canadian)-a-share price tag "appears steep" but Metro "has demonstrated in the past that the company is highly disciplined with regard to capital allocation and operating efficiency." Ultimately, the merger would benefit shareholders, she predicted.
With a 93 per cent voting stake in the company that bears his name,.
It is aiming for 75 million in cost savings within three years.
"While Metro had been thought to be strategically interested in them for a long time, it was always the case that this was going to have to be a friendly deal because the Coutu family controls the votes of the class B shares and.
The grocery and pharmacy sectors have faced a rash of consolidations in recent years as competition heats.The Coutu family and affiliated entities, which hold 93 per cent of voting rights, along with company directors and senior officers, have agreed to vote in favour of the deal.Last April, it was McKesson Canadas turn to swallow the Uniprix Group and its 330 pharmacies.In March 2016,.S.This summer, leaving lingering fears over how e-commerce might shake up the industry worldwide.The analyst wrote in a recent report that the Quebec grocer becomes particularly exposed to the risks of the pharmacy sector, citing the possibility of a federal intervention to reduce the price of generic drugs."Sometimes you have to forget your ego" and think bigger picture,.The price represents a premium.4 per cent over the average price of Jean Coutu's class A subordinated voting shares for a period ending Aug.