Walgreens Boots Alliance Inc (NASDAQ: WBA) has received the regulatory clearance required for the acquisition of Rite Aid Corporation (NYSE: RAD) for 4.375 billion in cash. Tuesday Walgreens announced that the amended and restated asset purchase agreement between the parties updates the terms of the agreement with Rite Aid announced in June 2017.
According to the Walgreens’ press release, the company will assume certain limited store-related liabilities as part of the new transaction. The transaction has been approved by the boards of directors of Rite Aid and Walgreens Boots Alliance and is still subject to other customary closing conditions. Store purchases are expected to begin in October, with completion anticipated in spring 2018.
"This is a significant moment for our company, and we are excited about the opportunities this agreement will deliver for our customers and patients, employees and investors," said Walgreens Boots AllianceExecutive Vice Chairman and CEO Stefano Pessina. "Combining Walgreens retail pharmacy network with a strong portfolio of Rite Aid locations is expected to help us achieve enhanced, sustainable growth while enabling us to broaden our reach and provide greater access to convenient, affordable care in more local neighborhoods across the United States. We are confident in the path ahead and look forward to working together to shape the future of health care and deliver on the full potential these stores bring to our network."