Walgreens, Rite Aid to Sell Stores to Fred's for Merger Approval

Josh Kim
Декабря 26, 2016

Walgreens shares were trading more than 1 percent higher in early trading Tuesday.

Since the company went public almost 25 years ago, the previous biggest one-day price gain was $2.81 on December 17, 2003.

Walgreens Boots Alliance Inc. and Rite Aid Corp., seeking regulatory approval to complete their $9.4 billion tie-up, on Tuesday said they agreed to sell 865 of the latter's stores to Fred's Inc. for $950 million in cash. Rite Aid Corp.is scheduled to release earnings figures on September 22. If approved, Fred's Pharmacy would become the third-largest drugstore chain in the U.S.

The asset sale is subject to Federal Trade Commission approval as well as the approval and completion of Walgreens' pending acquisition of Rite Aid.

Fred's Pharmacy and its subsidiaries operate over 600 discount general merchandise stores and three specialty pharmacy-only locations in 15 states in the U.S. There are 371 "full-service pharmacy departments located within Fred's stores", the company said.

Читайте также: Washington electors to be fined $1000 for their vote

President-elect Donald Trump's vow to "repeal and replace" the Affordable Care Act has created uncertainty in the health-care sector.

Walgreens noted that it is actively engaged in discussions with the FTC regarding the transaction and working toward a close of the Rite Aid acquisition.

"We believe the purchase of these stores will not only complement recent investments in our team members, processes and technological infrastructure, but also positively impact our business and maximize shareholder value", Bloom said.

The sale of Rite Aid stores to Fred's Pharmacy shows the potential promise of low-priced personal medical care at a time Americans are paying more out of pocket as deductibles rise.

При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
«» 2007 - 2019 Copyright.
Автоматизированное извлечение информации сайта запрещено.

Код для вставки в блог

Other reports by

Discuss This Article