Merger Between Rite Aid And Walgreens Essays

783 Words Dec 3rd, 2015 4 Pages
On October 27, 2015, Walgreens Pharmacy, announced it deal with Rite aid to combine in hopes to boost the industry. This massive deal would combine the second and third largest pharmacy companies to create possible the largest chain. The offer proposed by Walgreens to Rite aid was that it would pay 9$ per share. Wall Street Journal reported Rite aid shares skyrocketed 43% as the deal approached reaching a high $8.67 nonetheless, Walgreens offer was still greater. (Bomey) The total agreed offer by Walgreens was 17.2 Billion dollars which would also pay off Rite aids debt. CVS being on top of the two uncombined company has a total of 7,800 stores after making several deals with small time pharmacy companies over the years. However, the merge of Rite aid and Walgreens will boost its store count to nearly 13,000 stores or a 40% increase over CVS. (Wattles) The deal would have to pass the Anti-Trust Act to avoid giving the merged company such power that it would end others from competing in that particular market or industry. However on the bright side, the companies both hope to make the use of local pharmacies greater, more efficient and effective. Walgreens reported that the combined synergies, they should expect to save a one billion per fiscal year. They believe this because the after buying Boots and Alliance, they saved $799 million in fiscal 2015. Boots, a chain of pharmacy store much like the ones mentioned above, are located mainly in northern Europe, however…

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