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Walgreen's Europe Bet-WSJ

|Includes: Walgreens Boots Alliance, Inc. (WBA)

Walgreen's (WAG) made big news after spending $6.7 billion to buy 45% of Alliance Boots. This acquisition doesn't make sense to me unless Walgreen's eventually ends up buying the whole company. I understand that this acquisition should help the combined companies lower procurement costs, but it also increases the risks by doubling down on retail pharmacy. I think the first initiative should be to work together to attempt to be the leading online distributor of prescriptions to protect themselves from competitors with less overhead. I believe this acquisition is more of a panic move than anything else.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.