February 10, 2017
It appears that Rite Aid may be on the way out. The number three drug store chain, which began as a lone store in 1962 Scranton, is about to be purchased by Walgreens if the Federal Trade Commission approves the $17.2 billion deal.
The agency's approval is expected at any point.
According to a report, Maureen Ohlhausen, the interim FTC Commission, is unlikely to block the deal.
When the deal is approved, the number two and three stores will combine and overtake CVS to become the largest drugstore in the nation. There were a few issues that cause the deal to be delayed. Rite Aid, in order for the deal to go through, had to sell off 865 stores to Fred's Co. to deal with the antitrust issues. They have finally been resolved.
Now, the deal will combine Walgreens' 8.200 stores with Rite Aid's 4,600 stores, which are located in 31 states.
A Rite Aid company spokeswoman said refused to talk about the Walgreens takeover or the pending FTC approval.
If the deal is approved, it will end Rite Aid being an independent company, which has been loaded with mismanagement, high debt and high drama.
Rite Aid shareholders will earn $9 per stock share, which will be purchased when the deal goes through. John T. Standley, CEO of Rite Aid, would take away $25 million in a compensation package based on the merger deal.
After the takeover, the company said some consumers will still see some Rite Aid stores, especially in the beginning.