Rexall sold to U.S. health firm McKesson in $3B deal

Canadian drug store chain Rexall is set to be bought by U.S. health-services company McKesson Corp. in a $3 billion deal.

The Edmonton-based chain of 470 pharmacies announced the deal, in a release on Wednesday, that will see the company move to the hands of San Francisco-based McKesson, but keep the name Rexall in Canada.

The deal is expected to close in the first half of 2016, but will require numerous levels of regulatory and shareholder approval including the Competition Bureau and the Investment Canada Act since it is a foreign takeover that could potentially lessen competition in Canada.

Daryl Katz, founder of the Katz Group which owns Rexall, says the proceeds from the sale of the chain will be used to strengthen his other businesses: real estate, sports and entertainment, and private and public investments.

Among other things, Katz is the controlling shareholder of the Edmonton Oilers hockey team, and two minor league affiliates: the WHL's Edmonton Oil Kings and the AHL Bakersfield Condors.

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