Walgreens Again Trims Deal for Rite Aid But Finally Gains Approval
September 19 2017 - 9:42AM
Dow Jones News
By Austen Hufford
Walgreens Boots Alliance Inc. received regulatory approval for
its deal to buy thousands of stores from Rite Aid Corp., but only
after the number of stores to be purchased was again trimmed to
allay antitrust concerns.
Walgreens will now buy 1,932 Rite Aid stores for $4.38 billion,
a far cry from the original $9.4 billion deal for about 4,600
stores, struck in 2015. In June, the two companies scrapped plans
to merge, agreeing instead that Walgreens would seek to buy about
2,200 Rite Aid stores.
Rite Aid said Tuesday that the latest deal, for about 250 fewer
stores than had been agreed in June, followed discussions between
the two companies and the Federal Trade Commission.
Rite Aid will continue as a stand-alone company, operating about
2,600 stores, six distribution centers and its pharmacy-benefit
manager, EnvisionRx.
The deal has been approved by the boards of both companies and
doesn't require a shareholder vote. Store transfers will start in
October, with the goal of completing the transition in the spring
of next year.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
September 19, 2017 09:27 ET (13:27 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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