Walgreens CEO Says Rite Aid Deal Still Under Review With FTC
January 26 2017 - 11:33AM
Dow Jones News
By Sharon Terlep
Walgreens Boots Alliance Inc.'s chief executive said the
drugstore giant continues to discuss its proposed takeover of rival
Rite Aid Corp. with antitrust regulators, who have been reviewing
the combination for about 15 months.
At a meeting with investors on Thursday, CEO Stefano Pessina
said the companies were discussing "all instruments and actions"
they could put in place to win approval from the Federal Trade
Commission.
Walgreens in October 2015 agreed to buy Rite Aid for about $9.4
billion, a combination that would result in a drugstore chain with
more than 10,000 U.S. stores.
The antitrust concern is that such a big company could hold too
much sway in negotiations with pharmacy-benefits managers like CVS
Health Corp.'s Caremark or Express Scripts Holding Co., which
handle corporate and government drug plans.
The companies, in response to those concerns, said in December
that they would sell 865 stores to Fred's Inc. , a regional
drugstore chain.
The proposed deal is set to expire by Friday unless the
companies extend their deadline.
Write to Sharon Terlep at sharon.terlep@wsj.com
(END) Dow Jones Newswires
January 26, 2017 11:18 ET (16:18 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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