Deals
Walgreens Store Sales Seen as Hurdle for Rite Aid Approval
- U.S antitrust agency expected to review effect on drug costs
- Losing the No. 3 drug store would leave two major competitors
Antitrust Concerns Loom Over Walgreens, Rite Aid Deal
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Walgreens Boots Alliance Inc.’s deal to acquire Rite Aid Corp. is expected to draw antitrust scrutiny not only because the company would grow to 12,700 locations, but because of what goes on behind the scenes with drug payments.
Antitrust experts say the U.S. Federal Trade Commission, which is likely to review the transaction, will look closely at whether the merging of the No. 1 and No. 3 pharmacy chains in the U.S. will lead to higher prices for prescription drugs. The FTC has taken an aggressive stance against consolidation in the health-care sector, particularly with hospital mergers.