On Tuesday, Walgreens Boots Alliance (WBA) announced it will be purchasing Rite Aid in a $17.2 billion deal. If antitrust regulators approve the merger Walgreens will become the largest pharmaceutical retailer in the world.
WBA will pay Rite Aid Corp $9 per share amounting to $9.4 billion dollars. The total value is equal to $17.2 billion, including dept.
The chain has steadily been seeking global expansion through acquisitions. Walgreens Co. became what it is now known after absorbing European chain, Alliance Boots, last year. Prior to the international deal, Walgreens purchased Duane Reade, USA Drugs and Kerr Drug, which expanded its store count to more than 8,200 locations.
With the addition of Rite Aid store, Walgreens will boast approximately 12, 600 locations across the United States, Puerto Rico, and the Virgin Islands.
Once the deal is complete Rite Aid will remain separate from the Walgreens name and work as a subsidiary. Walgreens does plan to build “a fully harmonized portfolio of stores,” over time.
In June, CVS announced talks of purchasing Target Pharmacies for $1.9 billion; although, the merger has yet to be approved by regulators. They have also been expanding their brand name by procuring smaller chains.
CVS Health is the leading pharmaceutical company by market value with 7,800 stores.
According to USA Today, CVS has a 58% market share, while Walgreens and Rite Aid have a combined 41.3% based on revenue.
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