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Walgreens Boots Alliance and Rite Aid Update
Updated On: May 11, 2017
On Monday, May 8, 2017, Walgreens Boots Alliance and Rite Aid jointly notified the Federal Trade Commission (FTC) that they have complied with the agency’s additional request for information related to the proposed merger. In doing this, both Walgreens and Rite Aid have triggered a process whereby the FTC is now obligated to make a decision to either approve or block the merger. The FTC is the Federal Agency that is charged with reviewing any mergers or acquisitions for purposes of ensuring competition in such industries as retail/drug stores.
Additionally, Rite Aid recently announced in their filing with the Securities and Exchange Commission (SEC), the agency that is charged with overseeing publically traded companies, that up to 1,200 stores could be sold to Fred’s Pharmacy; the Memphis, Tennessee based drug store chain that has agreed to buy any stores that are to be divested to allow for the merger of Walgreens Boots Alliance and Rite Aid. In the same filing, Rite Aid acknowledges as part of any sale that Fred’s will honor any established collective bargaining agreements and re-hire employees in the acquired stores. Local 1776 received a communication with Rite Aid at the end of December 2016 that confirms the same.
Although we do not know what stores would be sold to Fred’s Pharmacy, this notification taken by both Walgreens and Rite Aid on Monday creates a deadline for when a decision will be made by the FTC to either approve or block the merger. Local 1776 is continuing to monitor this merger and encourage you to check back to our website often for the latest developments and news on the Walgreens-Rite Aid merger.