In order for its $17 billion deal with Rite Aid Corporation (RAD) to close, Walgreens Boots Alliance, Inc. (WBA) must
meet regulatory requirements, which calls for either selling or closing up to 1,000 stores. The exact number of stores Walgreens
is attempting to sell is 650, however nobody is biting. Regardless of this dilemma, Walgreens still expects its Rite-Aid deal to
close in the second half of this year.
meet regulatory requirements, which calls for either selling or closing up to 1,000 stores. The exact number of stores Walgreens
is attempting to sell is 650, however nobody is biting. Regardless of this dilemma, Walgreens still expects its Rite-Aid deal to
close in the second half of this year.
According to the New York Post, private equity firms are not interested in the aforementioned Walgreens stores because
they don’t see those them as high quality prospects. This doesn’t mean Walgreens stores themselves are low quality, but
it likely refers to poor locations, which is the most important factor for any brick-and-mortar retailer, including drugstores.
they don’t see those them as high quality prospects. This doesn’t mean Walgreens stores themselves are low quality, but
it likely refers to poor locations, which is the most important factor for any brick-and-mortar retailer, including drugstores.
It has been reported that Walgreens and CVS Health Corporation (CVS) met with the Federal Trade Commission last week,
and that CVS would buy some Walgreens stores as long as they were not in areas where they competed with CVS stores.
CVS wants to avoidcannibalization. While it’s possible a deal like this could come to fruition, Walgreens would probably
much rather have one buyer for the 650 stores it wants to sell.
and that CVS would buy some Walgreens stores as long as they were not in areas where they competed with CVS stores.
CVS wants to avoidcannibalization. While it’s possible a deal like this could come to fruition, Walgreens would probably
much rather have one buyer for the 650 stores it wants to sell.
If the Walgreens/Rite-Aid deal is approved, it would form the largest drugstore operation in the country, and that new company
would have 46% market share. Therefore, you can’t rule out the possibility that CVS will up its offer and buy more than “som
e"] Walgreens stores. However, this isn’t probable since the stores Walgreens wants to divest aren’t likely to be the best locations.
would have 46% market share. Therefore, you can’t rule out the possibility that CVS will up its offer and buy more than “som
e"] Walgreens stores. However, this isn’t probable since the stores Walgreens wants to divest aren’t likely to be the best locations.
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