Mr. Pessina did not address whether the companies plan to extend the deadline for the merger, which terminates Friday.
Here are seven things to know about the merger as it stands.
1. Officials initially announced the Walgreens-Rite Aid merger in October 2015. If successful, the combined entity would include more drugstores than any other chain in the U.S.
2. In its review of the agreement, the Federal Trade Commission expressed significant concerns about the deal, stating the proposed merger would threaten competition in the market.
3. To address the FTC’s concerns, Walgreens proposed divesting 865 Rite Aid drugstores to Memphis, Tenn.-based Fred’s in an all-cash $950 million transaction.
4. During the meeting Thursday, Mr. Pessina said the FTC’s review of the merger is ongoing. “We are actively engaged in dialogue with the FTC and we will do everything we can to support their work,” Mr. Pessina said.
5. Officials said selling select drugstores to Fred’s represents a good alternative to help quell the FTC’s concerns because the management team at Fred’s is intimately familiar with Walgreens’ business strategy — Fred’s CFO Rick Hans helped develop more than 250 Walgreens stores during his 25-year tenure with Walgreens.
6. The FTC has expressed additional concerns regarding Walgreens’ deal with Fred’s, questioning whether Fred’s could “pull off such a large transaction,” according to Forbes.
7. If the deal with Fred’s is successful, Fred’s will become the third largest drugstore chain in the nation, sources told Forbes.
More articles on transactions and valuations:
UIC, Chicago sign partnership formalizing state’s first academic public health department
Report: Hospital mergers increase institution’s value, savings
Prime Healthcare to convert RI hospital back into nonprofit
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.