Acquisition Will Strengthen Loblaw and Shoppers Drug Mart in Competitive
Marketplace and Deliver More Choice, Value and Convenience to Help
Canadians Live Life Well

• Complementary offerings of Canada’s #1 food retailer and Canada’s #1
  pharmacy and beauty retailer
• Convenient retail locations and unmatched store formats to reach more
  Canadians where they live and work
• Canada’s leading private label brands
• Business and synergy plans unchanged

BRAMPTON AND TORONTO, ON, March 21, 2014 /CNW/ – Loblaw Companies
Limited (TSX: L) (“Loblaw”) and Shoppers Drug Mart Corporation (TSX:
SC) (“Shoppers Drug Mart”) today announced that the Competition Bureau
has approved Loblaw’s acquisition of Shoppers Drug Mart. Loblaw and
Shoppers Drug Mart also announced that the acquisition is expected to
close March 28, 2014.

“We are pleased the Competition Bureau has concluded its review of this
transaction, and to have its consent to bring these two great Canadian
companies together,” said Galen G. Weston, Executive Chairman of
Loblaw. “This merger uniquely positions Loblaw to meet the most
important consumer trends in the country, including urbanization and
health and wellness. In doing so, we will continue to deliver more
choice, more value, and more convenience to Canadians.”

As part of its agreement with the Competition Bureau, Loblaw will sell
18 stores and nine pharmacy operations. Loblaw does not anticipate any
store closures as a result of these divestitures. Throughout the sale
process, customers can expect the same trusted and quality in-store
experience in the impacted stores.

In the course of its review of the acquisition, the Competition Bureau
expressed potential concerns about certain Loblaw supplier practices.
The Company will cooperate with the Competition Bureau in its continued
review of these practices. Loblaw is committed to supplier practices
that meet the Bureau’s objectives of maintaining competitive markets.

For a complete list of stores and pharmacy operations to be sold, please
see below:

Stores to be Divested
City, Province	Store
Sechelt, BC	Shoppers Drug Mart Trail Bay Mall, 5740 Teredo Street
Devon, AB	Shoppers Drug Mart Southport Common, 180 Miquelon Avenue
Innisfail, AB	Shoppers Drug Mart Henday Centre, 4804 50th Street
Westlock, AB	Shoppers Drug Mart Simply Pharmacy, 10030 106 Street
Aylmer, ON	Shoppers Drug Mart Aylmer, 6 Talbot Street East
Blenheim, ON	No Frills, 286 Chatham Street North
Chelmsford, ON	Shoppers Drug Mart Chelmsford, 3672 Highway 144
Elmira, ON	No Frills, 232 Arthur Street South
Exeter, ON	Shoppers Drug Mart Exeter, 38-44 Thames Road West
Kingsville, ON	Shoppers Drug Mart Main & Wigle, 271 Main Street East
Mount Forest, ON	Shoppers Drug Mart Mount Forest, 129 Main Street South
Port Hope, ON	Shoppers Drug Mart Barrett and Ontario, 60 Ontario Street
Petrolia, ON	Shoppers Drug Mart, 4177 Petrolia Street
Tantallon, NS	Shoppers Drug Mart St. Margaret’s Crossroads, 5181 Saint Margaret’s Bay Road
Dalhousie, NB	Save-Easy, 170 Renfrew Street
St. Stephen, NB	Shoppers Drug Mart Charlotte Mall, 210 King Street
Barrington Passage, NS	No Frills, 3695 Highway #3
Montague, PEI	Shoppers Drug Mart Montague, 521 Main Street

Independent Pharmacy Operator
City, Province	Store
Almonte, ON	Patrice’s YIG, 401 Ottawa Street
Embrun, ON	Embrun YIG, 753 Notre Dame Street
Ingersoll, ON	YIG Ingersoll, 273 King Street West
Listowel, ON	Zehrs Listowel, 600 Mitchell Road
Port Perry, ON	Vos’ YIG Port Perry, 1893 Scugog Street
Prescott, ON	O’Reilly’s YIG, 150 Prescott Centre Drive
Tillsonburg, ON	Zehrs Tillsonburg, 400 Simcoe Street
Bay Roberts, NF	Dominion Bay Roberts, Bay Roberts Shopping Centre, Main Highway, General Delvy
Carbonear, NF	Dominion Carbonear, Trinity Conception Square London Road

Information for Shoppers Drug Mart Shareholders
Shoppers Drug Mart shareholders have the ability to choose whether to
receive $61.54 in cash or 1.29417 Loblaw common shares plus $0.01 cash
for each Shoppers Drug Mart share held, subject to pro-ration as set
out in the plan of arrangement.

The deadline for registered Shoppers Drug Mart shareholders to make an
election with respect to the form of consideration they wish to
receive, subject to pro-ration, is March 26, 2014 prior to 5:00 p.m.
(Toronto time). Registered shareholders are reminded that they must
complete, sign and return a Letter of Transmittal and Election Form
with their share certificate(s) to Equity Financial Trust Company, as
depositary, by the election deadline. Shareholders holding Shoppers
Drug Mart shares through a broker, investment dealer or other
intermediary, should carefully follow the instructions provided by such
broker, investment dealer or other intermediary in order to make an
election.

Shoppers Drug Mart shareholders who have not made an election by the
election deadline will be deemed to have elected to receive the cash
consideration as to 53.9% of their shares and the share consideration
as to 46.1% of their shares, subject to pro-ration.

Additional copies of the Letter of Transmittal and Election Form may be
requested from Equity Financial Trust Company by telephone at:
1-866-393-4891 or 416-361-0930 ext. 205 or by email at: corporateactions@equityfinancialtrust.com or investor@equityfinancialtrust.com. Copies of the Letter of Transmittal and Election Form are also
available on Shoppers Drug Mart’s website at www.shoppersdrugmart.ca and on the SEDAR website at www.sedar.com.

Loblaw will provide joint tax election forms on its website at www.loblaw.ca shortly after closing.

About Loblaw Companies Limited
Loblaw Companies Limited, a subsidiary of George Weston Limited,
is Canada’s largest food retailer and a leading provider of drugstore,
general merchandise and financial products and services. Loblaw is one
of the largest private sector employers in Canada. With more than 1,000
corporate and franchised stores from coast to coast, Loblaw and its
franchisees employ approximately 138,000 full-time and part-time
employees. Through its portfolio of store formats, Loblaw is committed
to providing Canadians with a wide, growing and successful range of
products and services to meet the everyday household demands of
Canadian consumers. Loblaw is known for the quality, innovation and
value of its food offering. It offers Canada’s strongest control
(private) label program, including the unique President’s Choice, no
name and Joe Fresh brands. In addition, the Company makes available
to consumers President’s Choice financial services and offers the PC
points and PC Plus™ loyalty program. For more information,
visit Loblaw’s website at www.loblaw.ca and Loblaw’s issuer profile at www.sedar.com.

About Shoppers Drug Mart Corporation
Shoppers Drug Mart Corporation is one of the most recognized and trusted
names in Canadian retailing. Shoppers Drug Mart is the licensor of
full-service retail drug stores operating under the name Shoppers Drug
Mart (Pharmaprix in Qu bec). With 1,253 Shoppers Drug Mart and
Pharmaprix stores operating in prime locations in each province and two
territories, Shoppers Drug Mart is one of the most convenient retailers
in Canada. Shoppers Drug Mart also licenses or owns 56 medical clinic
pharmacies operating under the name Shoppers Simply Pharmacy
(Pharmaprix Simplement Sant in Qu bec) and six luxury beauty
destinations operating as Murale. As well, Shoppers Drug Mart owns and
operates 62 Shoppers Home Health Care stores, making it the largest
Canadian retailer of home health care products and services. In
addition to its retail store network, Shoppers Drug Mart owns Shoppers
Drug Mart Specialty Health Network Inc., a provider of specialty drug
distribution, pharmacy and comprehensive patient support services; and
MediSystem Technologies Inc., a provider of pharmaceutical products and
services to long-term care facilities. For more information, visit www.shoppersdrugmart.ca.

Forward-Looking Statements
Certain statements in this news release are forward-looking information
within the meaning of applicable securities legislation including, but
not limited to, statements relating to the expected closing date of the
transaction and certain strategic benefits expected to result from the
transaction. Forward-looking information is based on a number of
assumptions and is subject to a number of risks and uncertainties, many
of which are beyond Loblaw’s or Shoppers Drug Mart’s control, that
could cause actual results and events to differ materially from those
that are disclosed in or implied by such forward-looking
information. There can be no assurance that the anticipated strategic
benefits and operational, competitive and cost synergies will be
realized. Loblaw and Shoppers Drug Mart do not undertake any obligation
to update such forward-looking information, whether as a result of new
information, future events or otherwise, except as expressly required
by applicable law.

SOURCE Loblaw Companies Limited