Walgreens, Rite Aid Merger Faces More Antitrust Hurdles

Walgreens

Walgreens Boots Alliance has pumped the brakes on its planned $9.4B merger with Rite Aid due to continued antitrust concerns, the retailer announced Wednesday.

News that Krogers may no longer be interested in purchasing the 650 Rite Aid or Walgreens stores Walgreens was hoping to sell to appease antitrust regulators hit earlier this week, putting a snag in plans. Walgreens also announced it will likely have to close between 500 and 1,000 of its existing stores.

This new development means both retailers will need to find a competing retailer to take over their closed or consolidated locations to preserve competition in those areas, RetailDive reports.

Ever since the FTC shot down the Staples and Office Depot merger back in May, companies considering a merger have been working overtime to ensure they aren’t overconsolidating a sector. Walgreens is hopeful the deal will close in early 2017. [RD]

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Wall Street Impatient For Big Tech Returns On Data Center Spending

As AI Adoption Ramps Up, Half A Million Property Managers Are In The Crosshairs

Treasuries Hover Around 4.7% As Wall Street Questions If Warsh Is A 'Dove In Hawk's Clothing'

Avison Young Had Assets Frozen By Bank Over Unpaid Taxes

Philly Retail Momentum Spills From Rittenhouse Into Northern Liberties

Camden Property Trust Sells West Coast Portfolio, Clears $1.5B Target

Churchill Downs Plans To Sell 9 Casinos, Focus On Horse Racing

Bringing Stability And Savings To CRE Insurance Through Working Layer

More Hotel Owners In Need Of Cash Are Getting It From The Big Brands

Forget Buildings, Retailers Are Leasing Environments

Former Arms Dealer Targeting Heartland Apartment Takeover Files For Bankruptcy

SEC Charges REIT, Its Founders With Alleged $152M Fraud Scheme