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)

Business Conditions Report:Two Magnates On Momentum

I think the US economy is the strongest in the world,said Sam Zell,Chairman and CEO of Equity Group Investments.We're likely to see improving scenarios.It's all about confidence.
The government doesn't create jobs.Jobs are created by risk-takers and businessmen.All these small businesses being starved of capital are the ones who create employment.
We monitor all our businesses.Certain ones have more relevance than others.When we see our main customers starting to delay implementation of long range plans,that's an indication of trouble.
Clearly the recovery of the housing market will increase employment.Yet Citi is cutting 11,000 jobs.If you end up with a swap,I'm not sure you're gonna end up with a net plus.
There is a little bit of momentum in the US,adds Sir Martin Sorrell,CEO of WPP Group.It's in retail,but corporates are increasingly concerned and uncertain.
Consumer spending has picked up worldwide.There is a fairly stable,even improving consumer spending regimen.It's retail,and the big branded companies continue to have traction.
Fast-moving consumer goods retailers and manufacturers in the middle got caught.There is a sort of dam of decisions.If there is a resolution of the fiscal cliff,there will be a significant shift in confidence and people will feel confident about 2013.
Chinese consumers have surpassed those in the US as the world's biggest purchasers of luxury goods.

Dubai Retail Recovers

The retail sector in Dubai is on the mend.There is growing optimism this is a solid trend as tourists and shoppers return in droves.At the iconic Mall of the Emirates,consumer traffic is up 15% on the year.
Gulf region consumers think Dubai is retail central.The consumption of luxury goods is up 3% and projected to double.The regional consumers are supplemented by a gaggle of shopping tourists from both Saudi Arabia and the Indian subcontinent.
The Mall of the Emirates has 520 stores,anchored by the hypermarket Carrefour,the incredible Ski Dubai indoor slopes,CineStar Cinemas and several others.There are eighty eateries,two hotels and 60 luxury designer stores.Child care is also available at the huge emporium.
According to noted researcher Jim Bianco,the high end is doing better than the Wal-Marts of the world.The wealthy are benefiting from the higher stock market.If stocks start to slump,all bets are off for the consumer discretionary business.
For now,though,the woes of the financial crisis are fading in the desert sun.