Rite Aid is being bought out by Walgreens. This deal is estimated to be worth $17.9 billion. Rite Aid shareholders will receive $4.50 per share in cash and 0.8071 shares of Walgreens for each Rite Aid share. The deal is expected to close in the first half of 2019.
Walgreens plans to keep the Rite Aid name and operate the stores as standalone pharmacies. The combined company is expected to have more than 2,500 stores. The merger is expected to create a pharmacy behemoth with a market share of nearly 20%. The combined company is also expected to have a revenue of over $60 billion. The biggest concern with this deal is that it could further consolidate the pharmacy industry. This could lead to higher drug prices and less competition.
