Shares of Rite Aid (RAD) plummeted 26.5% (they were down more at one point) on June 29th after news broke that the company's management team, as well as the management team at Walgreens Boots Alliance (WBA), elected to end their merger agreement. Since I have been following some of these developments recently, I figured it would be interesting to dig into the info and give my thoughts about everything and what it should mean for Rite Aid moving forward.
A fascinating development
Previously, shares of Rite Aid were expected to be acquired, lock, stock, and barrel, by Walgreens in a deal valuing it between $6.50 per share and $7. On June 23rd, I published an article wherein I made the case that the company, which closed that trading day at $3.11, up slightly from the day before when I wrote the piece, may be an interesting prospect for investors to consider. On one hand, if the deal went through, Rite Aid's shareholders would rake in cash hand-over-fist. On the other, they would probably be due for a loss that is worth the possibility of the return. A couple of days later, shares soared, rising as much as 35.4% on rumors that the FTC (Federal Trade Commission) would likely vote in favor of the merger.
