CAMP HILL, PA - After almost a year of speculation and Rite Aid investors rallying to stop the deal, Albertsons and Rite Aid have agreed to mutually terminate the merger agreement—valued at $24 billion—both companies were scheduled to vote for today.
"While we believed in the merits of the combination with Albertsons, we have heard the views expressed by our stockholders and are committed to moving forward and executing our strategic plan as a standalone company," said Rite Aid Chairman and Chief Executive Officer John Standley. "We remain focused on leveraging our network of conveniently located retail pharmacies, our EnvisionRxOptions PBM, and our trusted brand of health and wellness offerings. We will continue building momentum for key areas of our business like our innovative Wellness store format, highly successful customer loyalty program, and expanded pharmacy service offerings, as we also enhance our omnichannel and own brand offerings to strengthen our competitive position and create long-term value for stockholders."
As a result of this decision, the special meeting of Rite Aid's stockholders, which was to be held on August 9, 2018, will not take place.
According to a press release, neither Rite Aid nor Albertsons will be responsible for any payments to the other party as a result of the termination of the merger agreement.
Rite Aid also announced its board of directors is evaluating governance changes at the company. As it considers these changes, Rite Aid will continue to engage with stockholders to ensure alignment between the company and its investors.
The company noted that its 2018 annual meeting of stockholders will be held on October 30, 2018, at 8:30 a.m., at a location to be determined.
For those of us who wondered what a Rite Aid/Alberstons merge might have looked like, our ideas will have to remain on the sidelines.
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