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Rite Aid looks to next phase

Published 06/30/2017, 03:10 PM
© Reuters.  Rite Aid looks to next phase
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  • The FTC is still likely to get involved in the reworked deal between Walgreen Boots Alliance (WBA -0.2%) and Rite Aid (RAD -2.9%), according to a D.C. antitrust attorney.
  • "They can’t create a situation where the remaining Rite Aid stores, whatever that looks like, are not going to be competitively significant," says Andrea Agathoklis Murino.
  • Working in Rite Aid's favor is the huge cash stack that it will bring in from the sale of 2,186 stores -- an amount that it can be argued will help reposition its as a competitive chain.
  • "It really gives them a lifeline whereas there probably wasn’t one if they had just gotten the deal scuttled and there was no transaction," notes Bloomberg Intelligence's Jonathan Palmer.
  • Now read: The Time Is Right For Brave Investors To Start Accumulating Rite Aid


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