Walgreens Prepares to Unload More Than 500 Stores | NBC Chicago
National & International News
The day’s top national and international news

Walgreens Prepares to Unload More Than 500 Stores

    processing...

    NEWSLETTERS

    Getty Images

    Walgreens believes that it will probably have to unload more stores than expected to ease antitrust concerns over its pending, $9.41 billion acquisition of Rite Aid, a deal that would make the nation's largest drugstore chain even larger.

    While it still expects to complete the acquisition this year, the Deerfield, Illinois, company said Thursday that it will probably have to divest more than 500 stores. The company previously said that it expected to divest 500 or fewer.

    Walgreens Boots Alliance Inc. says it remains "actively engaged" with the Federal Trade Commission as it reviews the deal.

    Federal regulators appear increasingly hesitant to approve major acquisitions after a record-setting pace last year in megadeals. They've already sued to block two multi-billion dollar health insurance tie-ups this year, the proposed combinations of Anthem Inc. and Cigna Corp. and Aetna Inc. and Humana Inc.

    Man Braves Iowa Flood Waters to Save Deer

    [NATL-DFW] Man Braves Iowa Flood Waters to Save Deer
    An Iowa man risks his own life to save a deer from Cedar River floodwaters. (Published Monday, Sept. 26, 2016)

    Walgreens Boots Alliance Inc. runs 8,173 U.S. stores, a total that could top 12,000 with the acquisition of Rite Aid Corp., based in Camp Hill, Pennsylvania. The deal, announced last October, could include divestiture of up to 1,000 stores if needed, but Walgreens has said and still expects to unload fewer than that.

    The combination of the nation's largest and third-largest drugstore chains would give Walgreens beefed-up negotiating muscle with drugmakers and other suppliers and enlarge its presence in the Northeast and in Southern California.

    It would also put Walgreens in head-to-head competition with rival CVS in a number of markets. CVS Health Corp. runs more than 9,600 retail pharmacies, and with thousands of independent drugstores.

    Shares of Rite Aid jumped about 6 percent, or 46 cents, to $8.21 in early trading. Walgreens rose $1.22 to $84.10.

    What Visitors Can Expect at African American History Museum

    [NATL-DC] What Visitors Can Expect at African American History Museum
    Dr. Greg Carr, associate professor and chair of the department of Afro-American Studies at Howard University, discusses the the significance of the museum and what can people expect when they walk in. (Published Sunday, Sept. 25, 2016)

    News breaks at inconvenient times.  Download one of the NBCChicago mobile apps and have the news come to you. Watch live streaming newscasts, receive critical push notifications on the go and stay in touch with your city around the clock.