Walgreens Boots Alliance has purchased Rite Aid for 9.4 billion dollars.Walgreens,which has more than 13,200 stores in the US,Canada,UK and eight other countries,will absorb Rite-Aid's approximately 4600 stores in 31 states,for a total of some 17,800 drug stores.The merger is the latest chapter in a trend within the health care sector,spurred on by Obamacare,to cut costs by combining operations and gaining bargaining power with drug companies and insurers by increasing size.Rival CVS Caremark has more than 7800 stores.*
Walgreens does business in the US under the Walgreens and Duane Reede names,and under the Boots name outside the US.The company's CEO is Italian Stefano Pessina,who was the executive chairman at Alliance Boots GmbH before it merged with Walgreens.
Rite Aid stores will initially continue under the Rite Aid name.Anti-trust regulators in the US could possibly require the divestment of some Walgreens assets,as there will only be two competitors of any size post-merger.*
The merged company will have 41% of US market share versus 58% for CVS.*
Walgreens Boots Alliance Inc (WBA),Rite Aid Corp (RAD)
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