Walgreens scraps Rite Aid merger, will instead buy half its stores

[Eugene]

Source: Reuters

DEALS | Thu Jun 29, 2017 | 4:58pm EDT

Walgreens scraps Rite Aid merger, will instead buy half its stores

By Siddharth Cavale and Diane Bartz

Drugstore chain Walgreens Boots Alliance Inc (WBA.O) scrapped its deal to buy Rite Aid Corp (RAD.N) after failing to win antitrust approval, but said it would instead buy nearly half of the smaller rival's U.S. stores for $5.18 billion.

Rite Aid's shares plunged about 28 percent to $2.85, while Walgreens shares were up 1 percent at $77.97. Walgreens also ended a related deal to sell as many as 1,200 Rite Aid stores to Fred's Inc (FRED.O), sending Fred's shares down 19 percent.

Walgreens, the biggest U.S. drugstore chain, will likely have an easier time winning antitrust approval to buy 2,186 Rite Aid stores after it failed to win approval to take over the nearly 4,600-store chain.

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In fact, Walgreens' plan to buy 2,186 Rite Aid stores accomplishes many of the same goals as the merger - including eliminating Rite Aid as a rival - but does so in a way that makes it harder for the FTC to take the companies to court to stop the transaction, antitrust experts said.

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Read more: http://www.reuters.com/article/us-riteaid-m-a-walgreens-boots-idUSKBN19K1DK?il=0

[2naSalit]

1. Boycott both...

I already do.

[samplegirl]

2. They eliminated my position in March

And I am still out work. Sending resumes and actively looking for work. They did away with the Wellness positions in the stores with low front end sales. Then I had to read this today.