Tue | Oct 23, 2018

Walgreens, Rite Aid revise deal

Published:Wednesday | September 20, 2017 | 12:00 AM

Walgreens and Rite Aid have finally devised a combination of the nation's largest and third-largest drugstore chains that will get past antitrust regulators.

The companies said Tuesday that they have Federal Trade Commission clearance for a slimmer version of a store-purchase agreement announced in June. Walgreens will now spend US$4.38 billion on 1,932 stores, three distribution centres and inventory.

The drugstore chains had said earlier this summer that Walgreens planned to spend about US$5.18 billion on 2,186 stores.

That deal marked a step down from Walgreens' initial plan to take over Camp Hill, Pennsylvania-based Rite Aid Corp for US$9.4 billion. That deal spent a couple of years in regulatory review before the companies abandoned it.

Deerfield, Illinois-based Walgreens Boots Alliance Inc says the latest deal should be completed by spring.

- AP