Report: FTC considering lawsuit to block Walgreens, Rite Aid deal
Shares of Camp Hill, Pa.-based Rite Aid fell after a report surfaced indicating the Federal Trade Commission may file a lawsuit to halt the company's $7 billion deal with Deerfield, Ill.-based Walgreens Boots Alliance, according to Bloomberg.
Trade publication Capitol Forum first reported the news.
In an earnings call April 5, Walgreens Boots Alliance Executive Vice Chairman and CEO Stefano Pessina said he was "optimistic" the deal would receive regulatory approval. To reach the revised agreement's July 31 deadline, Walgreens issued a declaration of "certified compliance," giving the FTC three months to issue a final decision on the proposed transaction.
The FTC expressed concerns during their initial review of the deal, arguing the proposed transaction would be anticompetitive.
The companies initially proposed the acquisition agreement in October 2015.
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