DEERFIELD, IL - The latest in the saga of large mergers and acquisitions comes in the form of a lapsed deal deadline between Walgreens and Rite Aid. With the expiration date passing last week, the companies have tossed out their original acquisition agreement, announced in the fall of 2015, for an amended deal.
In the revised deal, Walgreens will pay a lower price, and Rite Aid will increase the number of stores it is selling up to 1,200 to ease monopoly and competition concerns by the FTC.
According to source Daily Herald, Rite Aid had initially been set to sell a maximum of 500 stores, and Walgreens had originally planned to pay $9 per share in an approximately $9.4 billion deal. Walgreens will now spend between $6.50 to $7 per share of shares of Rite Aid, depending on how many stores they need to divest.
The deadline to complete the deal, which expired last week, was extended to the end of July.
How will this and other mergers in the retail circuit continue to change the buy-side landscape? Stay tuned to AndNowUKnow as we continue to follow these strategies and their influences on the produce industry.