Walgreens Boots Alliance, Inc.NASDAQ
Thu, Oct. 20, 8:22 AM
Thu, Oct. 20, 7:08 AM| Thu, Oct. 20, 7:08 AM | 13 Comments
Wed, Oct. 19, 10:14 AM
- Rite Aid (RAD -4.5%) tumbles in early trading after the NY Post reports that Kroger (KR +0.3%) may pass on buying the 650 stores that Walgreens (WBA -1.2%) and RAD would need to sell to gain regulatory approval for their planned merger.
- KR may decide not to buy because the Federal Trade Commission, now a year into its merger review, recently told the company that the stores could not be purchased and closed, with the operations moved inside the grocery stores, according to the report.
- A WBA-RAD merger would create the biggest U.S. drug chain, and the FTC could sue to block the deal without a solution to the stores, but the report quotes a source as saying that both the FTC and WAG remain motivated to find a remedy.
Thu, Oct. 6, 3:51 PM
- "There is a growing consensus that suggests a troubling decrease in competition," says FTC Commissioner Terrell McSweeny in prepared remarks at a conference. "Against this backdrop, "the role antitrust plays in maintaining competitive markets has become, quite appropriately, an important topic of public debate."
- Pretty vanilla stuff, but there was also a report last week suggesting the FTC wanted more in the way of divestitures from Walgreens Boots Alliance (WBA -0.3%) before greenlighting the merger.
- RAD -2.85%
Wed, Sep. 28, 9:19 AM
- Private equity firms aren't showing a great deal of interest in the 650 retail stores being unloaded by Walgreens Boots Alliance (NASDAQ:WBA) in order to comply with the FTC's ruling on the Rite Aid (NYSE:RAD) merger, reports New York Post. Many of the stores are seen as unprofitable investments.
- The lack of interest could pave the way for CVS Health (NYSE:CVS) to step in and buy stores selectively if the FTC and Walgreens back off the stated goal of finding a single buyer.
- The 650 units on the sales block only represent 5% of the total Walgreens-Rite Aid store count.
Thu, Sep. 8, 9:29 AM
- Based on ongoing discussions with the Federal Trade Commission (FTC), Walgreens Boots Alliance (NASDAQ:WBA) and Rite Aid (NYSE:RAD) now expect to divest more stores in order to get the FTC's timely OK on the merger. The specific number will be higher than the previously communicated 500, but lower than 1,000.
- They continue to expect the deal to close this year. WBA also maintains its expectation that the transaction will be accretive to non-GAAP earnings in the first full year after the close.
- Read now Walgreens - The Board And The Merger
Fri, Jun. 10, 3:56 PM
- Shares of Walgreens Boots Alliance (WBA +4.4%) and Rite Aid <<RAD> > are both higher off of reports that the FTC is set to clear a path for the merger of the two drugstore chains.
- It's expected that the FTC will require some store closings and concessions with the pharmacy benefit manager business before granting a final approval.
Thu, Jan. 14, 2:51 AM
- WebMD (NASDAQ:WBMD), the U.S. online health information publisher, is exploring the possible sale of all or part of its business, FT reports.
- The company is said to be in talks with Walgreens Boots Alliance (NASDAQ:WBA) and UnitedHealth (NYSE:UNH), among other potential buyers.
- Since the start of the year WebMD shares have risen 10%, giving the company a market value of close to $2B.
- Update: Shares are up 6% premarket on increased volume.
Nov. 2, 2015, 7:27 PM
- Walgreens Boots Alliance (WBA +2.2%) says it would be willing to sell off up to 1,000 stores in order to wrap a buyout of Rite Aid (RAD +0.6%).
- The company had said it had looked at antitrust concerns but hadn't put a number to what divestitures might be required.
- One thousand of the stores would come to 8% of the combined companies' total footprint, though in a presentation filed with the SEC, Walgreens "believes the most likely outcome is divestments of less than half this number."
- Walgreens said it expects the deal to be accretive during the first full year after closing, with synergies in excess of $1B, primarily from procurement, cost savings and operational synergies.
- Previously: Regulatory concerns surround Walgreens, Rite Aid deal (Oct. 29 2015)
Oct. 29, 2015, 2:32 AM
- Top antitrust lawmakers in the U.S. Senate are calling for close scrutiny of Walgreens Boots Alliance's (NASDAQ:WBA) plan to buy Rite Aid (NYSE:RAD), the latest healthcare consolidation following the rollout of the Affordable Care Act.
- The deal would unite two of the three largest U.S. drugstore chains, the other being CVS Health (NYSE:CVS).
- Walgreens Chief Executive Stefano Pessina said previously that the company had analyzed the antitrust aspect of the deal but did not speculate on the number of drugstores it might need to divest in order to win regulatory approval.
- Previously: Walgreens buying Rite Aid for $17.2B ($9/share) (Oct. 27 2015)
Oct. 27, 2015, 5:27 PM
- Confirming media reports, Walgreens Boots (NASDAQ:WBA) announces it's buying fellow drugstore owner Rite Aid (NYSE:RAD) for $17.2B after factoring debt, or $9/share, in cash. The deal is expected to close in 2H16; Walgreen expects to eventually reap over $1B/year in synergies.
- The price represents a 48% premium to Rite Aid's Monday close, and is also $0.33 above Rite Aid's Tuesday close of $8.67. Nonetheless, Rite Aid is down 6.3% after hours to $8.12, as a healthy M&A arb spread opens. Walgreens is up 0.9% to $96.00, after rising 6.4% in regular trading.
- Following the deal's closing, Rite Aid is expected to initially continue operating under its existing brand. However, decisions "will be made over time regarding the integration of the two companies, ultimately creating a fully harmonized portfolio of stores and infrastructure."
- Walgreens plans to finance the deal with both debt and existing cash. It's expected to be accretive in its first year after closing.
Oct. 27, 2015, 12:45 PM
- Rite Aid (NYSE:RAD) shares have reopened for trading with a 39.7% burst on a Dow Jones report that Walgreens Boots Alliance (NASDAQ:WBA) is close to a deal to acquire the firm.
- The deal -- which would link the No. 2 and No. 3 drugstore chains in the U.S. -- is expected to come tomorrow, sources tell Dow Jones.
- Typical takeover premiums could value Rite Aid at close to $10B in the purchase, vs. its pre-news $6B market cap.
- In its last quarter, Rite Aid’s profit sank due to cost of integrating recently acquired Envision Pharmaceutical Services, the WSJ notes.
- Updated 12:55 p.m.: Walgreens shares have spiked on the news as well, up 4.3%.
- Related: Riding The Rite Aid Roller Coaster (Oct. 27 2015)
Apr. 30, 2015, 4:08 PM
- According to Bloomberg, the list of firms that have indicated an interest in Omnicare (NYSE:OCR) include Express Scripts (NASDAQ:ESRX), CVS Health (NYSE:CVS), Walgreens Boots Alliance (NASDAQ:WBA) and McKesson (NYSE:MCK). Initial bids for the $8.5B market cap firm are due in May.
- Previously: Omnicare reportedly exploring sale; trading halted (April 22)
- Previously: Omnicare buyer would need to pay $95/share - UBS (April 23)
Apr. 23, 2015, 7:41 AM
- UBS estimates a buyer would have to pay $95 to acquire Omnicare (NYSE:OCR).
- Firm thinks Walgreens (NASDAQ:WBA) or Rite Aid (NYSE:RAD) could be interested, but are unlikely to pay up due to limited synergies.
- OCR increased management comp. in the event of a change in control, a possible indicator the company may be sold.
- Previously: Omnicare reportedly exploring sale; trading halted (Apr. 22)
Mar. 24, 2015, 10:25 AM
- A merger between Walgreens Boots Alliance (WBA -0.3%) and Rite Aid (RAD +1.3%) would lead to cost savings of between $400M and $650M, according to analysis from Credit Suisse.
- The investment firm also forecasts the merged drugstore operator would have to shed 3% of its stores to appease the FTC.
- RetailWire notes the new company would face some challenges with unions and higher borrowing costs.
- Rite Aid is up over 13% over the last month due in part to merger speculation.
- Previously: Walgreen Boots Alliance eyes U.S. drugstore acquisition (Mar. 12 2015)
- Previously: No quit in Walgreens-Rite Aid merger talk (Mar. 19 2015)
Mar. 19, 2015, 10:06 AM
- Shares of Rite Aid (RAD +3.8%) are higher again to extend on a rally fueled by Walgreens takeover rumors.
- Volume on Rite Aid over the last few sessions has been very elevated.
- Walgreen Boots Alliance (NASDAQ:WBA) is up over 6.6% for the week as investors don't scare off from the prospect of the company taking on the Rite Aid debt load.
- A big bet on Rite Aid is seen as a smarter play than buying up mom-and-pop chains.