Walgreens CEO: Company in 'active discussions' to get approval for Rite Aid deal

With the deadline for the deal set to expire Friday, Jan. 27, Walgreens Boots Alliance CEO Stefano Pessina told shareholders attending the Walgreens Boots Alliance annual meeting Thursday morning that the board of directors for both Walgreens and Rite Aid were in "active" discussions toward getting the deal approved even as the Federal Trade Commission continues to deliberate over the proposed retail pharmacy merger.



The news bolstered stocks of all three public companies tied to the deal, including Rite Aid, Fred's and Walgreens Boots Alliance.



"At this time, we are actively engaged in discussion with Rite Aid regarding how to proceed," Pessina said. "These discussions include taking into account anything that is required to gain approval of the transaction."



Specifically regarding FTC, Pessina offered no comment, however. "The FTC is doing their job and the process is going on and we cannot comment on what the FTC is doing," he said. "The only thing I can repeat is we are actively engaged to dialogue with the FTC."



Last week, Deutsche Bank analyst George Hill suggested the deal would continue to be pursued even if the January 27 deadline expires. "As the Walgreens/Rite Aid merger agreement is set to expire on Jan. 27, Walgreens could look to re-cut the Rite Aid deal given the challenges, potentially enhancing its profile," he said.