Walgreens in $17.2B deal to acquire Rite Aid

  • 8 years ago
Walgreens said on Tuesday that it will buy rival Rite Aid in a $17.2 billion deal that would whittle the nation's one-time mom-and-pop drug-store industry into two massive chains.
The deal would combine the second and third largest drug-store operators, and if it gets regulatory approval intensify the already fierce competition between Walgreens and CVS Health.
Walgreens Boots Alliance, which operates the namesake drug store chain, said it is paying $9 per share in cash in a valuation that includes the assumption of debt.
That reflects a 48% premium above Rite Aid's value at the close of trading Monday.
Walgreens said Rite Aid would keep its brand name for now.
The company expects to save more than $1 billion in "synergies," which could come in the form of combined purchasing power and cost cuts.

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