Walgreens Could Divest 1,000 Rite Aid Stores To Secure Merger

Walgreens Boots Alliance is willing to part with as many as 1,000 Rite Aid stores to secure approval of its acquisition of its fellow drug store chain, the company said in a filing with the United States Securities and Exchange Commission.

Last week, Walgreens Boots Alliance and Rite Aid Corp. announced that they had entered into a definitive agreement under which Walgreens Boots Alliance would acquire all outstanding shares of Rite Aid for $9 per share in cash.

The companies stated the total enterprise value of the acquisition at $17.2 billion, including acquired net debt.

The companies maintained that their boards of directors had approved the transaction, which also is subject to approval by the holders of Rite Aid’s common stock, the expiration or termination of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary closing conditions. The companies said they expect the transaction to close in the second half of 2016.