The latest in a series of large mergers and acquisitions comes in the form of a lapsed deal deadline between Walgreens and Rite Aid. The deal’s expiration date passed last week, and the merging companies have tossed out their original acquisition agreement, announced in the fall of 2015, for a new amended version.
In the revised deal, Walgreens will pay a significantly lower price per share, and Rite Aid will increase the number of stores it is selling up to 1,200 to ease monopoly and competition concerns raised by the FTC.
According to source Daily Herald, Rite Aid had initially planned to sell a maximum of 500 stores, and Walgreens had originally planned to pay $9 per share in an approximately $9.4 billion deal. Walgreens is now planning to spend between $6.50 to $7 per share for shares of Rite Aid, depending on how many stores they will need to divest to meet the FTC’s requirements.
The original deadline to complete the deal expired last week, but has now been extended to the end of July.
For updates on how this and other mergers continue to change the buy-side landscape, check in with Deli Market News.