Loblaw: Trading PC Financial For A Stake In EQB
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The Affluent Tortoise2.42K FollowersFollow5ShareSavePlay(14min)CommentsSummaryLoblaw Companies Ltd. divests PC Financial to EQB Inc. for $1.3B, sharpening focus on core grocery and pharmacy operations.L:CA receives $800M for PC Financial, a 17% equity stake in EQB, and $500M in surplus capital, supporting share buybacks.The 12-year strategic partnership with EQB strengthens the PC Optimum loyalty program, enhancing data-driven customer engagement.I maintain a hold rating on L:CA, citing a premium 26x forward P/E valuation despite strategic benefits from the transaction. jewhyte/iStock Editorial via Getty Images Author's Note: All figures are listed in Canadian dollars unless otherwise noted. On December 3, 2025, Loblaw Companies Limited (L:CA) announced it would be selling its PC Financial business division to EQB Inc. (This article was written byThe Affluent Tortoise2.42K FollowersFollowI am a value-oriented investor who seeks out high-quality companies with long histories of dividend growth. I believe that patient investors who build a core portfolio of dividend paying equities can achieve their retirement goals without taking on unnecessary risk. Dividend growth profiles are the best indicators of management's commitment to returning cash to shareholders. Dividend growth investing involves identifying quality companies with competitive advantages that provide visibility towards future cash flow growth. Warren Buffet once wrote "If you don't find a way to make money while you rest, you will work until you die". Fundamental analysis and patience are the tools I use to build a portfolio of equities that will enable my very comfortable retirement. Join me in exploring value and growth-at-a-reasonable-price opportunities and in building your own income-producing portfolio of dividend stocks. I am an investor with over 20 year of experience in the market. I hold a B.Mgt and an MBA where I enjoyed studying both corporate and personal finance.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.