Update on Walgreens-Rite Aid deal

The battle for Walgreens to acquire Rite Aid may be entering its final stage.



Walgreens is expected to certify compliance within days, giving the Federal Trade Commission 90 days to either clear the $9.7 billion deal or sue to block it, reported the New York Post. The newspaper added the certified compliance period would expire roughly the same day as the Walgreens-Rite Aid merger agreement terminates on July 31. The proposed transaction was first announced in October 2015.



Walgreens approximately one month ago gave the Federal Trade Commission 30 days’ notice it was going to certify compliance — a notification that a merger applicant believes it has supplied all the information regulators need to make a decision on the deal.



According to the Post, “FTC staff has been preparing to sue to block the merger, believing Walgreens divestiture proposal does not do enough to restore competition in areas where Walgreens and Rite Aid are dominant.”



Under terms of the agreement, Fred’s Pharmacy will acquire at least 865 divested Rite Aid stores if the FTC approves the Walgreens-Rite Aid merger.



Click here to read more.