Rite Aid Merger Is Sunk

Rite Aid (NYSE:RAD) investors are likely waiting with bated breath for the week ahead when the FTC is expected to pass judgment on the merger between Rite Aid and Walgreens (NASDAQ:WBA). RAD is currently trading a bit above $3 per share despite the maximum acquisition price of $7 per share offered by Walgreens (dependent on how many stores the former has to sell off to satisfy the FTC), indicating the market doesn't have very high hopes for a successful merger.

And for good reason. The FTC has been deliberating this merger for two years, which is not a good sign for the success of the deal. This was further reinforced when the FTC made a further request for information this past May. Throughout the process, the FTC has demanded significant concessions in order to lessen the anti-trust impact of the merger, but to no avail to this point.

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