By acquiring Canada's biggest pharmacy chain, Loblaw said it would create a retail giant with more than C$42 billion in revenue and gain access to the growing small-urban store sector.
Loblaw's offer of C$61.54 in cash and stock represents a premium of 27 percent to Shoppers Drug Mart's Friday closing on the Toronto Stock Exchange.
Shareholders of Shoppers Drug Mart will have the option to either receive C$61.54 in cash or 1.29417 Loblaw common shares plus C$0.01 in cash for each share held. The maximum amount of cash to be paid by Loblaw will be about C$6.7 billion.
(Read more: M&A Hits Decade Low, but Goldman Sees Upside)