A PYMNTS Company

US: Walgreens-Rite Aid receive second request from FTC

By  |  December 13, 2015

Walgreens Boots Alliance and Rite Aid said Friday the Federal Trade Commission has requested more information about their proposed merger.

Walgreens and Rite Aid said they had expected the so-called “second request.” The companies still expect the deal to close in the second half of 2016.

Walgreens in October agreed to pay about $9.4 billion to buy Rite Aid, a move to create a drugstore giant at a time when companies in nearly every corner of the health-care industry are seeking to gain advantage from bulking up. The deal was expected to be closely scrutinized by antitrust regulators, as the companies are two of the three-biggest drugstore owners in the country.

In addition to regulatory approval, Walgreens’ deal also must be approved by Rite Aid’s shareholders.

Antitrust regulators have moved to scuttle a number of deals this year, including two earlier this week: Staples Inc.’s roughly $6 billion takeover of Office Depot Inc. and General Electric Co.’s $3.3 billion agreement to sell its appliances business to Electrolux AB of Sweden.

Full content: Komo News

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.