RITE AID

WASHINGTON — Walgreens is expected to certify compliance within days, giving the Federal Trade Commission 90 days to either clear the $9.7 billion deal, or sue to block it, sources told the New York Post.

The newspaper added the certified compliance period would expire roughly the same day as the Walgreens-Rite Aid merger agreement terminates on July 31. The proposed transaction was first announced in Oct. 2015.

CAMP HILL, Pa. — Although Rite Aid affirmed it believes its acquisition by Walgreens Boots Alliance is in the “best interest of Rite Aid shareholders, customers and associates,” Chairman and CEO John Standley acknowledged “the extended duration of the merger process is having a negative impact on our results.

While Rite Aid and Walgreens Boots Alliance continue to work toward a merger of their two operations in the coming year, 2016 marked several milestones for Rite Aid. In the past year, the company has converted almost half of its store base to the highly successful Wellness store format.

Drug chains are editing existing product assortments to clear more space for up-and-coming brands that court back shoppers who may have migrated to specialty stores. Several categories are heating things up in the beauty aisles, especially Korean beauty. Kline research reveals the category is growing at a 30% annual clip, and chains are seeking the right items to introduce more shoppers to the innovative and effective Korean entries.

MEMPHIS, Tenn. — More than one prominent investor has recently approached Fred’s Pharmacy with the intention of investing money in the operator of 601 locations in 16 states, according to the New York Post.

The Post posits the cash infusion from one or more sources would help Fred’s pay for and successfully operate the 865 divested Rite Aid stores it pledged to purchase for $950 million, which is a likely a closing condition should the Federal Trade Commission approve the proposed $9.7 billion Walgreens Boots Alliance-Rite Aid merger.

DEERFIELD, Ill. — Walgreens is still confident in its ability to close the Rite Aid transaction, but will force the issue if it comes to that, Stefano Pessina, executive vice chairman and CEO Walgreens Boots Alliance, told analysts Wednesday morning.
 

DEERFIELD, Ill. — Despite gains in prescription marketshare and comparable pharmacy sales across its U.S. base, Walgreens Boots Alliance missed analyst expectations, MarketWatch reported early Wednesday morning, precipitating a slight drop in Walgreens Boots Alliance shares in premarket trading.