US: Rite Aid stock rises on FTC fix proposal

Walgreens Boots Alliance is set to revise its agreement to buy some Rite Aid stores, a move that may be enough for the drugstore chain operator to resolve outstanding antitrust concerns, Bloomberg reported.

Rite Aid’s shares were up 8.4% at US$2.85 before the bell on Monday, September 18.

Walgreens is in final stage of negotiations with the Federal Trade Commission (FTC)for its plan to buy more than 2,000 Rite Aid stores and is set to propose a modified deal, Bloomberg reported, citing people familiar with the matter. The companies and the FTC are close to reaching an agreement that would allow the deal to proceed, said the people, who declined to discuss details of the revised transaction. The number of stores involved in the latest iteration won’t change dramatically, one of the people said.

In June, Walgreens, the nation’s largest drugstore chain operator, said it would buy nearly half of the smaller rival’s stores for US$5.18 billion, after it failed to win approval to take over the company.

Full Content: Bloomberg

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