Walgreens, Rite Aid Receive Second Request From FTC
12 December 2015 - 2:30AM
Dow Jones News
Walgreens Boots Alliance Inc. and Rite Aid Corp. said Friday the
Federal Trade Commission has requested more information about their
proposed merger.
Walgreens and Rite Aid said they had expected the so-called
"second request." The companies still expect the deal to close in
the second half of 2016.
Walgreens in October agreed to pay about $9.4 billion to buy
Rite Aid, a move to create a drugstore giant at a time when
companies in nearly every corner of the health-care industry are
seeking to gain advantage from bulking up. The deal was expected to
be closely scrutinized by antitrust regulators, as the companies
are two of the three-biggest drugstore owners in the country.
In addition to regulatory approval, Walgreens' deal also must be
approved by Rite Aid's shareholders.
Antitrust regulators have moved to scuttle a number of deals
this year, including two earlier this week: Staples Inc.'s roughly
$6 billion takeover of Office Depot Inc. and General Electric Co.'s
$3.3 billion agreement to sell its appliances business to
Electrolux AB of Sweden.
Objections by the Justice Department earlier this year helped
derail Comcast Corp.'s $45 billion bid for Time Warner Cable Inc.
The FTC won a court fight in June that blocked the $3.5 billion
combination of food-distribution rivals Sysco Corp. and US Foods
Inc. Last week, two leading tuna producers—the owners of Bumble Bee
and Chicken of the Sea brands— called off a $1.5 billion merger in
light of U.S. concerns.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
(END) Dow Jones Newswires
December 11, 2015 10:15 ET (15:15 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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