Economy

Eugene

(61,823 posts) Tue Oct 27, 2015, 04:36 PM Oct 2015

Walgreens Boots to buy Rite Aid in $17.2 billion deal

Last edited Tue Oct 27, 2015, 05:44 PM - Edit history (2)

Source: Reuters

Deals | Tue Oct 27, 2015 5:25pm EDT

Walgreens Boots to buy Rite Aid in $17.2 billion deal

Walgreens Boots Alliance Inc (WBA.O) said it agreed to buy rival Rite Aid Corp (RAD.N) in a deal valued at about $17.2 billion.

Walgreens said on Tuesday it offered $9 per share for Rite Aid, a premium of 48 percent to the stock's Monday close.

(Reporting by Ramkumar Iyer in Bengaluru; Editing by Kirti Pandey)

http://www.reuters.com/article/2015/10/27/us-rite-aid-m-a-walgreens-boots-idUSKCN0SL2D020151027

Original Reuters Story:

Walgreens Boots Alliance nears deal to buy Rite Aid: sources

BY GREG ROUMELIOTIS AND LAUREN HIRSCH

Drugstore chain Walgreens Boots Alliance Inc (WBA.O) is nearing a deal to buy smaller peer Rite Aid Corp (RAD.N) for more than $10 billion, people familiar with the matter said on Tuesday.

A deal would combine the second- and third-largest U.S. drugstore chains. This further consolidation of the sector is likely to attract antitrust scrutiny.

Walgreens and Rite Aid could announce an agreement as early as Wednesday, the sources said, requesting anonymity because the negotiations are confidential. Officials from both companies declined to comment.

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4 replies

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Walgreens Boots to buy Rite Aid in $17.2 billion deal (Original Post) Eugene Oct 2015 OP

Crap! I don't like Walgreens but DO like my RiteAid store. :-( -nt- 99th_Monkey Oct 2015 #1

Another chain gone? Sanity Claws Oct 2015 #2

Interesting Freddie Oct 2015 #3

More Consolidation Punx Oct 2015 #4

99th_Monkey

(19,326 posts)

1. Crap! I don't like Walgreens but DO like my RiteAid store. :-( -nt-

Reply to Eugene (Original post)

Tue Oct 27, 2015, 04:53 PM

Oct 2015

Sanity Claws

(21,842 posts)

2. Another chain gone?

Reply to Eugene (Original post)

Tue Oct 27, 2015, 04:53 PM

Oct 2015

Walgreen's took over Duane Reade and operates under both names in New York. If they take over Rite Aid, that will leave CVS. Any other chain drug stores remaining?

Freddie

(9,257 posts)

3. Interesting

Reply to Eugene (Original post)

Tue Oct 27, 2015, 05:38 PM

Oct 2015

They started building a Walgreens in my town, the building is done but empty, and they stopped. Rumor is that Walgreens pulled out of the deal. We already have 3 Rite-Aids, a CVS and a Giant supermarket pharmacy here. Wonder if the possible merger is why the Walgreens is on hold.

Punx

(446 posts)

4. More Consolidation

Reply to Eugene (Original post)

Wed Oct 28, 2015, 09:49 AM

Oct 2015

It won't be good for the customer in the long run. That will leave only one company running stand alone drug stores in the Portland area. Also count on more jobs being eliminated from the economy.

Rite Aid had bought out Thrifty in the 90's and and Sav-on at some point. Those were primarily located in the California and the SW though.

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