Walgreens Boots Alliance said Wednesday its $17.2 billion takeover of Rite Aid would not diminish competition because of the growing importance of mail-order sales and other rivals to retail pharmacies.
Walgreens Boots chief executive Stefano Pessina highlighted this type of competition in remarks that appeared to foreshadow the company’s potential arguments to US antitrust regulators. Big-box chains like Wal-Mart and supermarkets have become big players in selling prescription drugs.
“Think of the mail-order, think of the people in specialized,” Pessina said in an earnings conference call.
“We are in an environment where there is a lot of competition,” Pessina said. “And the fact that we put together two companies will not reduce the competition.”
The merger, announced after markets closed Tuesday, would create a strong rival to market leader CVS Health, combining Walgreens Boots’s 13,100 stores in a dozen countries with Rite Aid’s 4,600 stores in the US.
Full content: KPBS
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
UK Probes Lindab’s Acquisition of HAS-Vent Amid Fears of Market Monopoly
Apr 28, 2024 by
CPI
Shein Faces EU Regulations Over User Data
Apr 28, 2024 by
CPI
Google Fights Back Against US Antitrust Lawsuit
Apr 28, 2024 by
CPI
US Homeland Security Establishes Blue-Ribbon Board with Tech CEOs to Advise on AI
Apr 28, 2024 by
CPI
FTC Accuses Amazon Executives of Using Disappearing Messaging Apps to Conceal Evidence
Apr 28, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI