UPDATE 2-Shoppers Drug Mart buy helps Loblaw profit beat estimates

Wed Nov 12, 2014 2:45pm EST
 
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* Adj basic earnings C$0.90/share vs est of C$0.87/share

* Savings of about C$44 mln from Shoppers Drug Mart deal

* Charges of C$46 mln in Q3

* Shares rise to 9-year high (Adds CEO comments, details on restructuring)

Nov 12 (Reuters) - Loblaw Cos Ltd, Canada's largest grocer, reported a better-than-expected quarterly profit as it benefits from the Shoppers Drug Mart acquisition, and said it was on track to achieve the targeted savings from the deal.

The company's shares rose as much as 3 percent to a near nine-year high of C$59.82 on Wednesday.

Loblaw bought Shoppers Drug Mart last year to ward off rising competition as U.S.-based rivals such as Wal-Mart Stores Inc and Target Corp expanded their Canadian business.

The company said it remained on track to achieve C$100 million in savings in the first year following the closing of Shoppers Drug Mart acquisition.

The deal, which closed in March, helped Loblaw save about C$44 million in the third quarter, the company said.   Continued...