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Walgreens, Rite Aid Enter Amendment And Extension To Merger Agreement

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Walgreens, Rite Aid Enter Amendment And Extension To Merger Agreement

In a merger amendment publicized Monday morning, Walgreens Boots Alliance Inc (NASDAQ: WBA) and Rite Aid Corporation (NYSE: RAD) agreed to reduce the value of Rite Aid shares between $6.50 and $7 and to divest a total of 1,200 stores. The initial agreement proposed a divestment of 1,000.

The companies also announced the extension of the transaction deadline to July 31. The contract was originally made to expire October 27, 2016, and the date had already been extended to January 27.

News of the amendments came a week after the Federal Trade Commission evaluated the acquisition on antitrust concerns. The FTC had been expected to uphold the deal prior to January 20 but has not yet issued its approval.

Walgreens attempted to satisfy regulatory demands through December’s divestment of nearly 900 Rite Aid stores to Fred’s, Inc. (NASDAQ: FRED). The deal has been in the works since October 2015.

After Monday's updates were announced, Rite Aid shares fell 16.88 percent in pre-market trading, while Walgreens shares were trading up 1.4 percent. Fred's shares were seen up 8.08 percent.

Posted-In: Federal Trade CommissionM&A News Health Care Contracts Movers General Real Estate Best of Benzinga

 

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