Almost two years ago, Walgreens shared its $9.7 billion plan to merge with Rite Aid and, ever since, there has been a back and forth about finalizing the details.
The latest roadblock in this saga is the FTC’s decision to press pause on the deal as regulators are still gathering information re: both the merger and divestiture of 1,200 stores. Some are saying that this action, known as a Civil Information Demand, could potentially result in a lawsuit to block the deal from moving forward.
The main issue raised is that if Walgreens completes this deal that it would become the largest drugstore in the country and could possibly raise drug prices.
While Rite Aid’s shares rose four percent this past Monday to $4.11, it’s still down ten percent from the past month. It has also fallen 56 percent in its short interest since January. Of its 1,200 stores, Rite Aid has already agreed to sell 865 of its locations to the Fred’s chain.
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