Walgreens to Divest Up to 1,000 Stores in Rite Aid Deal

Walgreens Boots Alliance expects to sell no less than 500 stores and may need to divest up to 1,000 to ease antitrust concerns about its $9.41 billion acquisition of Rite Aid.

The Deerfield, Ill.-based company said its "actively engaged" with Federal Trade Commission (FTC) regulators and still expects the deal to close in the second half of the 2016 calendar year. 

Walgreens' acquisition of Camp Hill, Pa.-based Rite Aid, valued at approximately $17.2 billion including acquired net debt, would unite the nation's largest and third-largest drugstore chains. The total number of stores controlled by Walgreens could increase to over 12,000. The company will also gain increased negotiating power with drugmakers and suppliers.  

Walgreens said it expects to "realize synergies from the acquisition in excess of $1 billion" within four years of closing  by reducing operational and other costs.