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Are We There Yet? A Timeline Of The Walgreens-Rite Aid Merger

Are We There Yet? A Timeline Of The Walgreens-Rite Aid Merger

Back in October of last year, Walgreens Boots Alliance Inc (NASDAQ: WBA) announced it would acquire Rite Aid Corporation (NYSE: RAD) for $9.00 per share and expected to complete the deal sometime in the second half of 2016. Although the second half of 2016 has already started, shares of Rite Aid are trading only at $7.47, reflecting investors doubts on the original agreement.

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The stock is trading at about a 17.5 percent discount to Walgreen’s original offer. Below is a timeline of Walgreen’s Rite Aid deal, highlighting the deal’s recent developments.

  • August, 24, 2016: Rumors indicated The Kroger Co (NYSE: KR) had emerged as a possible bidder for Rite Aid/Walgreen Boots Alliance stores.
  • July 17, 2016: Walgreens is said to be in discussions with the Federal Trade Commission regarding the potential sale of assets in order to get the go-ahead for its acquisition of Rite-Aid, according to sources as reported by the NY Post.
  • July, 14, 2016: NY Post reported Walgreens was said to be working with the FTC to determine what it needs to sell in order to get approval for Rite Aid deal.
  • February 4, 2016: Rite Aid announces holders have adopted deal with Walgreens.
  • October 27, 2015: Walgreens and Rite Aid announced they have agreed Walgreens would acquire all outstanding shares of Rite Aid for $9.00 per share in cash, for a total enterprise value of approximately $17.2 billion. The deal was expected to close in H2 of 2016. Rite Aid shares rose 42 percent in the regular session on rumor of a potential deal, but fell 7 percent after-hours, when the deal was announced.
  • Although neither Walgreens nor Rite Aid had officially retracted its original agreement, investors are still worrisome on the reality of the deal.

    Rite Aid closed Wednesday trading at $7.47, down just under 2.5 percent.

    Walgreens closed Wednesday trading at $81.47, down just over 1 percent.

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