US: Kroger balks at buying stores from Walgreens-Rite Aid deal

Supermarket chain Kroger is questioning whether to proceed with buying divested stores from Walgreens Boots Alliance Inc as part of its proposed acquisition of Rite Aid Corp, a source familiar with the situation said on Wednesday.

Cincinnati, Ohio-based Kroger’s hesitation casts uncertainty on the future of the $9.4 billion Walgreens-Rite Aid deal, which need approval from antitrust authorities, who have pushed back against a number of large deals this year.

The Federal Trade Commission has told Kroger it would not have the option to close and integrate Rite Aid stores that are near Kroger locations, the source said. Kroger had concerns over the financial feasibility of such a set-up, as Rite Aid and Kroger have some overlap in products they sell, the source said, asking not to be named as the matter is confidential.

Walgreens said in early September it would likely have to divest between 500 and 1000 stores, more than its previous estimate, to win regulatory approval for its planned acquisition. Walgreen operates about 8,100 stores in the United States.

Full Content: Reuters

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