Rite Aid Corporation announced on September 26th that it had agreed to be purchased by Berkshire Hathaway Inc. for $17.
2 billion in cash and shares. The acquisition, slated to be completed in the first half of 2015, will make Berkshire Hathaway the largest pharmacy chain in the United States.
Berkshire Hathaway is already the largest shareholder in Rite Aid, with a 38% stake. The company said that it would take on $3 billion in debt to finance the purchase.
The deal is likely to face antitrust scrutiny, as Rite Aid is the only major pharmacy chain in many parts of the United States. But analysts said that the company could still be profitable even after the merger, as it has been able to keep prices low by relying on generic drugs.
