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Walgreens, Rite Aid ink $950M deal to sell 865 stores

Deerfield, Ill.-based Walgreens Boots Alliance and Camp Hill, Pa.-based Rite Aid have entered into an agreement to sell 865 Rite Aid stores to Memphis, Tenn.-based Fred's in an all-cash $950 million transaction.

Walgreens and Rite Aid inked the agreement to address concerns identified by the Federal Trade Commission in its review of Walgreens' proposed acquisition of Rite Aid.

The Walgreens-Rite Aid merger was announced in October 2015, and Walgreens is trying to close the deal in early 2017.

"With this agreement, we are moving ahead with important work necessary to obtain approval of our acquisition of Rite Aid," said Walgreens Executive Vice Chairman and CEO Stefano Pessina.

The agreement to sell the Rite Aid stores to Fred's is subject to FTC approval, completion of the pending acquisition of Rite Aid by Walgreens and other customary closing conditions.

The companies said the specific locations of the Rite Aid stores being divested will be disclosed upon approval of the Walgreens-Rite Aid merger by the FTC.

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