Rite Aid Chairman and CEO John Standley told employees the Federal Trade Commission's review of Rite Aid's pending merger with Deerfield, Ill.-based Walgreens Boots Alliance "has taken longer than expected" and "has had a negative impact" on the company's results, according to a StreetInsider.com report.
Mr. Standley noted in a June 5 letter both corporations "remain actively engaged in discussions with the FTC to attempt to gain regulatory approval," but acknowledged "there can be no guarantee … the merger will be approved," according to the report.
Mr. Standley said he expects a decision "sometime soon" and will continue to provide employees with updates regarding the merger's progress.
Walgreens issued a declaration of "certified compliance" in April, stating both companies had fully collaborated with the FTC to the best of their abilities and gave the regulatory agency approximately three months to issue a decision on the proposed merger. However, recent reports have indicated the FTC may consider filing a lawsuit to halt the $7 billion deal.
During an April 5 earnings call, Walgreens Boots Alliance Executive Vice Chairman and CEO Stefano Pessina said he was "optimistic" the deal would receive regulatory approval.