Well-known retailers in Quebec, Metro, and Jean Coutu, are coming together to make a greater impact in the province. This is going to be achieved after the merger, whose worth is nothing less than $4.5 billion.
It can be said that Jean Coutu is doing well since the shareholders enjoy about $24.50 per share. The same level of success has also been achieved by Metro. After the merger, Jean Coutu’s shareholders will be getting some of their benefits in Metro shares.
The owners of these companies think it is necessary to merge so that they can effectively face the competition from other food and pharmacy industries such as Wal-Mart, Costco and Amazon.
In an interview, Coutu, the founder of Jean Coutu said: “I think the move we are doing actually is good for both of these companies, it’s good for myself and it’s good for the future because we open more opportunities than staying what we were.”
At a news conference a few weeks ago, he also disclosed: “Sometimes you have to forget your ego and try to combine with a real friend.”
While Metro has over 850 food and pharmacy stores in Quebec, Jean Coutu can boast of 419 pharmacies. They both employ up to 86,000 people in their different outlets.