Walgreens-Rite Aid Deal May Be a Go
Walgreens’ $10 billion acquisition of Rite Aid is nearing approval by federal regulators, sources say. Reports say the $91 billion chain is optimistic about the new package of stores it’s selling to regional pharmacy chain Fred’s. The parties involved are hopeful the Federal Trade Commission will approve the deal in the next two weeks to four weeks. If the merger is successful, it will create the largest drug store chain in the U.S.
Total Retail’s Take: After getting pushback from the FTC previously, this deal could impact the retail industry drastically. Previously, Walgreens had only agreed to sell 865 stores to Fred’s. Now that the agreement has changed to 1,200 stores, approval for the deal may happen more quickly, making Walgreens’ retail footprint all that much bigger. Previously, Walgreens acquired Duane Reade to increase its regional presence in New York.