I don't expect the Shoppers Drug Mart to move higher, but I do expect Loblaws to come down. They currently have 689 millions in cash and 10.92 billions in debt. ( meaning they will need to borrow some cash)
For this reason I'm short Loblaws and Long Shoppers Drug Mart. As you can see the ratio between the two is absolutely insane right now. Hoping for a quick return to the mean
The deal would still need to be approved by regulators and the government.