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Buzz surrounds status of Rite Aid-Walgreens transaction
Roger DuPuis//June 13, 2016//
Listen to this articleCiting unnamed sources, the New York Post last week reported “growing signs” that a proposed $17.2 billion acquisition of Cumberland County-based Rite Aid Corp. by Walgreens Boots Alliance is on track to receive Federal Trade Commission approval.
Announced in late October, the planned $9 per share merger is scheduled to close in the second half of this year. It remains under FTC review.
The Post report went on to suggest that this week could see Illinois-based Walgreens reveal which stores it will shed in areas where the competitors may overlap too closely. Walgreens signaled its willingness to divest stores within days of the deal’s announcement.
Even as the Post was reporting on signs of a successful deal, other analysts were pointing toward what they see as potential signs of trouble, including the FTC’s recent rejection of an Office Depot/Staples merger and concerns that regulators might be wary of a merger between the nation’s No. 1 (Walgreens) and No. 3 (Rite Aid) drug chains might result in an entity with too much bargaining power.
A Rite Aid spokesperson did not immediately respond to a request for comment this morning.
According to a statement on the company’s website, Rite Aid plans to release its first quarter results on Thursday morning, but will not hold a conference call due to the pending merger.
Walgreens spokesman Michael Polzin said the company could not comment on the matter, adding only that “our last update was in our second quarter earnings press release, when we said it was on track to close in the second half of calendar 2016.”
