Walgreens, Rite Aid To Sell 200 More Stores, Cutting Deal Value By $2B To Win FTC Approval
After struggling to gain regulatory approval for their proposed merger, Walgreens Boots Alliance and Rite Aid just agreed to reduce the merger price by at least $2B.
On Monday the two firms agreed to sell off 200 more stores, lowering Rite Aid’s value to between $6.8B and $7.4B, the Wall Street Journal reports. When Walgreens agreed to buy its rival in October 2015 the sales price of $9 a share valued Rite Aid at $9.4B.
Executives at both firms hope selling off more stores will make the deal less troublesome to the Federal Trade Commission, which took issue with the merger since it would create a drugstore chain totaling over 10,000 U.S. stores. Earlier this month Walgreens indicated it has no backup plan should the merger fail. [WSJ]