Walgreens CEO Says Rite Aid Deal Still Under Review With FTC

By Sharon Terlep 

Walgreens Boots Alliance Inc.'s chief executive said the drugstore giant continues to discuss its proposed takeover of rival Rite Aid Corp. with antitrust regulators, who have been reviewing the combination for about 15 months.

At a meeting with investors on Thursday, CEO Stefano Pessina said the companies were discussing "all instruments and actions" they could put in place to win approval from the Federal Trade Commission.

Walgreens in October 2015 agreed to buy Rite Aid for about $9.4 billion, a combination that would result in a drugstore chain with more than 10,000 U.S. stores.

The antitrust concern is that such a big company could hold too much sway in negotiations with pharmacy-benefits managers like CVS Health Corp.'s Caremark or Express Scripts Holding Co., which handle corporate and government drug plans.

The companies, in response to those concerns, said in December that they would sell 865 stores to Fred's Inc. , a regional drugstore chain.

The proposed deal is set to expire by Friday unless the companies extend their deadline.

Write to Sharon Terlep at [e-mail]

(END) Dow Jones Newswires

January 26, 2017 11:18 ET (16:18 GMT)

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