Walgreens Boots Alliance Acquires Rite Aid To Form Drug Store Colossus

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)

Investment Problems and Prospects:Thoughts From Alliance Bernstein

Our point of view on the Volcker Rule is that it reduces liquidity all over the world,says Peter Kraus,Alliance Bernstein CEO.Investors want to trade securities at a price that's fair;at the end of the day,the Rule reduces liquidity.Our view reflects our clients' views.
The Volcker Rule,part of the Dodd-Frank financial reform legislation,takes effect in July.It bans proprietary trading by financial institutions.Big banks will be required by the Rule to maintain a staff of 50-60 people to comply with it.
That the Rule applies to foreign institutions as well has increased the criticism of it.Complaints have been rolling in from around the world.
The changes on Alliance Bernstein's business will not be particularly large,Mr.Kraus added,but it will crimp our clients' returns.It will hinder the sale of mutual funds.If you buy securities from a seller,you must sell at the end of each day,making it difficult to price the sale.The Rule is very complex from both the compliance and the structural point of view.
As for the overall investing environment,we certainly understand the flow of funds is still into fixed income.That makes it an interesting time to consider tilting back into equities,Mr.Kraus explained.
Mr.Kraus' colleague at AB,Vadim Zlotnikov,observes that some of the positives from the U.S. and China should be able to overcome the problems in Europe.To the extent Greece defaults,and there is no contagion,I don't think it would be a big enough event.
Mergers and acquisitions economically would make a lot of sense.The financial availability is improving;the deals are looking attractive.It could be April or mid-year before conditions deteriorate,in Mr.Zlotnikov's estimation.
Alliance Bernstein is a client-centered and research-driven asset management firm.Their global client base includes a broad range of individuals and institutions who are assisted by the firm's array of products and service organisations,which are tailored to their distinctive needs,from offices worldwide.
Alliancebernstein Holding,LP(AB)

Making the Case For Change:Toronto Executive Confident in Stock Exchange Merger

Something business leaders have to face from time to time is convincing regulators-typically politicians-to permit their larger plans to go forward.Thomas Kloet,CEO of the TMX Group,parent of the Toronto Stock Exchange,thinks they will get the deal done.The Ontario provincial government,as well as other provinces and the federal government in Ottawa,are scrutinizing the proposed merger of the Toronto and London stock exchanges.
I understand there's a political element to this,Mr.Kloet said.There are gonna be multiple questions.We think we have a very compelling story to tell.It's good for Canadian investors and capital formation.
Ours is a merger of equals,with shared government and management nearly 50/50.You're seeing a consolidation within the space.We see it as a chance to offer low cost services to our clients.We think we'll compete very favorably,with the most listed issues.
I believe we're positioned for further growth with this consolidation.We have an excellent business strategy.This combination accelerates our strategy and increases its possibility for success,Mr.Kloet maintained.
NYSE/Euronext and Deutsche Boerse are also attempting to merge,and the NASDAQ/OMX Group is evaluating its own options.
NYSE/Euronext(NYX),NASDAQ/OMX Group(NDAQ)

Analyst:NASDAQ Exchange May Be Acquired By Asians

Ed Ditmire,Capital Markets Analyst at Macquarie Group Limited,thinks the NASDAQ/OMX Group,the Times Square-based stock exchange,is characterized by efficiency and lower growth,with an equity emphasis.It is pressured by the forthcoming merger of Deutsche Boerse-NYSE/Euronext,but seems to be more of a target than an acquirer.
A large Asian exchange such as Hong Kong may go after NASDAQ/OMX.After all,Hong Kong uses the NASDAQ trading system.
Mr.Ditmire is very positive on the stock exchange sector.There are better business trends now,with more mergers and acquisitions.It's hard to rule out any deal as having no merit.
NASDAQ/OMX is reportedly considering a range of options to respond to the NYSE deal,from launching a rival bid for NYSE with a partner,to buying another exchange,as well as possibly selling itself.The company fears being marginalised.
Macquarie Group Limited is a full service financial firm with 15,500 employees.It is based in Sydney,Australia and has 300 billion dollars under management.
Macquarie Group Limited(MQG),NASDAQ/OMX Group(NDAQ)