Walgreens Boots Alliance cuts Rite Aid offer price and extends deal deadline

Walgreens Boots Alliance cuts Rite Aid offer price and extends deal deadline

Walgreens Boots Alliance has announced it is devaluing its Rite Aid acquisition from $9 a share in October 2015 – when the merger was announced – and will now be purchasing the company at $6.50-$7 a share.

Alongside this the companies have stated the deal will take a further six months to close, expecting to close on July 31, giving a nod that Walgreens is looking for further ways in which to gain regulatory control.

The news has hit Rite Aid shares, which fell 17.5 percent to $5.72 per share at close on Monday, while Walgreens has stated it will ‘divest up to 1,200 Rite Aid stores and certain additional related assets if required to obtain regulatory approval.’

This is an increase of 200 stores following the original agreement.

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