NY Post: FTC not ready to approve Walgreens-Rite Aid deal

WASHINGTON — According to reports, regulators are still seeking information on the proposed merger between Walgreens Boots Alliance and Rite Aid, and the subsequent divestiture of as many as 1,200 stores to Fred's.



Analysts are suggesting the implication does not bode well for the merger, as the continued Civil Information Demands from the Federal Trade Commission may be indicative that the agency is still not appeased over the merger's potential effect on the retail pharmacy market.



In fact, it could be a sign the FTC is collecting data toward a possible lawsuit aimed at blocking the deal, sources told The New York Post. The filing of CIDs “is all consistent with bringing a case,” one person close to the matter told The Post. “It tells you the FTC is still very concerned about this deal.”



Both Rite Aid and Fred's stocks were trading lower on the day amid the latest merger twist, with Rite Aid trading at $3.83, down 6.8%, at midday and Fred's trading down 1.6% to $14.41. Shares of Walgreens Boots Alliance were also down slightly by 0.4% to $84.60.