US FTC wary of WBA's divestment plan for Rite Aid $9.4B deal
January 23, 2017
General Merchandise Stores | Camp Hill, PA | Corporate Acquisition
The FTC isn't convinced the Walgreens Boots Alliance (NASDAQ: WBA) plan to sell 865 stores to Fred's (NASDAQ: FRED) will protect competition in the industry from the consolidation represented by Walgreens' $9.4 billion acquisition of Rite Aid (NYSE: RAD), according to Bloomberg. Walgreens will owe Rite Aid a $325 million termination fee if the ruling stands, but the sources cited by Bloomberg don't believe the FTC will have its full review completed by the deal's deadline of January 27. Nevertheless, shares of WBA, Fred's and Rite Aid all closed down on the news to end the week.