Walgreens, Rite Aid Scrap Original Merger, Ink New Deal
Walgreens Boots Alliance announced it will now only purchase half of Rite Aid's stores. Forbes reports the new deal is to help the acquisition pass regulatory scrutiny from the Federal Trade Commission. Rite Aid will remain a "multiregional" drugstore chain after selling 2,186 of its 4,500 stores to Walgreens. Rite Aid will receive $5.175 billion in cash for the 2,186 stores and "related distribution assets and inventory from Rite Aid," the companies said this morning. The Rite Aid storefronts being acquired are mostly in the Northeast , Mid-Atlantic and Southeast regions of the United States.
Total Retail's Take: The Walgreens-Rite Aid merger has been under FTC scrutiny for some time now, and it appeared to be disolving much like the Staples-Office Depot deal. The original acquisition announcement was made in October 2015, and included Walgreens taking control of all of Rite's Aid's assets. With this amended merger agreement, Fred's Pharmacy will no longer be a buyer of Rite Aid stores, a stipulation put in place to help the original deal gain FTC approval.