Rite Aid (RAD) and Walgreens (WBA) have struck a new deal and scrapped the merger that was under review by the FTC, implying the merger was likely going to be blocked. This new deal comes despite some last-minute optimism from investors that the deal might go through. This new deal involves Walgreens buying 2,186 of Rite Aid's stores for $5.17 billion and also provides Rite Aid with a $325 million termination fee.

As I wrote in two articles this week (here and here), the merger seemed likely to fail due to a multitude of factors including the duration of the review process, the request by the FTC for additional information last month, and a report that the acting head of the Bureau of Competition, Tad Lipsky, recommended a lawsuit to block the deal. My suspicions have now been confirmed.

READ FULL ARTICLE HERE