Walgreens to Divest Additional Stores
September 08 2016 - 10:20AM
Dow Jones News
Walgreens Boots Alliance Inc. on Thursday said it would divest
more of its stores than previously expected to help satisfy the
Federal Trade Commission's review of its pending acquisition of
Rite Aid Corp.
The drugstore operator said it and Rite Aid remain "actively
engaged" with the FTC is exploring potential divestiture remedies
"to address certain issues raised in those discussions."
Walgreens now expects it will be required to divest more than
the 500 stores previously expected, but still fewer than 1,000.
The company continues to expect that the acquisition will add to
its adjusted per-share earnings in the first full year after
closing, which it expects to happen in the second half of 2016.
In October, Walgreens agreed to buy Rite Aid for about $9.4
billion in a move that would beef up the drugstore giant as
companies across the U.S. health-care industry look for ways to
bulk up.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
September 08, 2016 10:05 ET (14:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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