General Merchandise Stores | Camp Hill, PA | Corporate Acquisition
Just a week after the US FTC expressed concerns over the original agreement, which called for Walgreens (NASDAQ: WBA) to pay $9 per share in a deal valuing Rite Aid (NYSE: RAD) at $9.4 billion, Walgreens has chopped its bid by at least 22%. Depending on how many Rite Aid stores are divested to sate regulatory concerns, Walgreens now proposes to pay between $6.50 and $7 per share, valuing Rite Aid between $6.8 billion and $7.4 billion. The two companies have also agreed to push the deadline for completing the deal back six months, to July 31, in order to address regulatory issues. Walgreens stock ended Monday's trading relatively unchanged, but Rite Aid tumbled 17.5% to close at $5.72.