In accordance with the terms of their merger agreement, Walgreens Boots Alliance and Rite Aid have mutually agreed to extend the end date of their merger deal from October 27, 2016, to January 27, 2017. The companies now expect the transaction will close in early calendar 2017.
In October 2015, the companies entered into a definitive agreement under which Walgreens Boots Alliance agreed to acquire all outstanding shares of Rite Aid for $9.00 per share in cash.
In September, Walgreens Boots Alliance stated that it remains actively engaged with the Federal Trade Commission regarding its review of the pending acquisition, and continues to expect that the most likely outcome will be that the parties will be required to divest between 500 and 1,000 stores. Previously, the company had expected to divest only 500 stores to pave the way for the acquisition and merger’s approval by the FTC.
The company said it believes that it will be able to execute agreements to divest these stores to potential buyers, pending FTC approval, by the end of calendar year 2016.
Walgreens Boots Alliance operates over 13,100 stores in 11 countries, with about 8,240 drug stores in 50 states. Rite Aid operates nearly 4,600 stores in 31 states.