Jun
29
Walgreens Scraps Rite Aid Takeover, Will Buy Some of Its Stores Instead
Posted in: Uncategorized
Walgreens Boots Alliance Inc. is scrapping its deal to buy all of rival Rite Aid Corp. and instead will buy a smaller piece of the drugstore chain, after the original takeover effort seemed doomed by antitrust regulators.
The companies said Thursday that they would end their original deal in which Walgreens would have bought Rite Aid for as much as $7.37 billion. Instead, Walgreens will pay $5.18 billion to buy 2,186 stores, leaving Rite Aid as a regional chain.
Although the combination of the two giant pharmacy chains had been under intense scrutiny from Federal Trade Commission and its fate was far from certain, the decision to end the old deal sent Rite Aid shares down 23% in premarket trading Thursday. Walgreens jumped 4.4%.
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