Rite Aid Corporation (NYSE: RAD) announced on February 1st that it had agreed to purchase Walgreens Boots Alliance, Inc. (NAsdaQ: WBA) for $17.
2 billion. The deal is expected to be completed in the first half of 2016.
The combined company is expected to have a market capitalization of $82.8 billion, making it the largest pharmacy chain in the United States.
The combined company is also expected to have over 2,500 stores.
The acquisition is seen as a strategic move by Rite Aid as Walgreens is a dominant player in the pharmacy market. The combined company is expected to have a gross margin of 34.
5% and a net income of $5.1 billion.
The deal is seen as a positive move by Walgreens as it will give it access to Rite Aid’s large customer base and distribution network. The acquisition is also seen as a way to consolidate the pharmacy market and reduce competition.
The deal is expected to be positive for both companies as it is expected to increase competition and drive down prices. The acquisition is also seen as a way to improve the customer experience.
