Walgreens, Rite Aid shed 865 stores to close $9.4B deal

FILE - In this June 21, 2013, file photo, customers leave a Walgreens pharmacy in Jackson, Miss. Walgreens will use its $9.41 billion takeover of rival Rite Aid to spread its philosophy on making drugstores destinations for customers looking to stay healthy or buy beauty products. (AP Photo/Rogelio V. Solis, File)

(AP) – Walgreens and Rite Aid will sell 865 stores to rival retailer Fred’s for $950 million, possibly removing the final roadblock preventing the tie up between the nation’s largest and third-largest drugstore chains.

Wall Street certainly saw it that way, sending shares of Rite Aid up nearly 6 percent before the opening bell Tuesday.

Walgreens says it’s working to close its $9.4 billion purchase of Rite Aid early next year. It said that it’s selling the Rite Aid stores in response to concerns raised by federal anti-trust regulators.

Walgreens Co. said in October 2015 that it planned to buy Rite Aid Corp. in a deal that would create about 12,000 U.S. locations, or several thousand more than its closest competitor, CVS Health Corp.

(Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s