Walgreen report puts Rite Aid in tailspin
Shares of Rite Aid (RAD) tumbled Friday amid a New York Post report, citing unnamed sources, that says Walgreens Boots Alliance (WBA) has set a deadline of “roughly three months” to obtain a decision from the Federal Trade Commission on its merger with the smaller drugstore chain.
Shares of Walgreens dipped 0.3% to 83.07 in the stock market today, trading just above the 200-day line but below the 50-day. Rite Aid stock fell 3.85% to 4.25, hitting its lowest since September 2013. Rite Aid has lost nearly half its value in 2017 alone.
The Post had reported earlier in the month that Walgreens was mulling this declaration of “certified compliance,” indicating that it has provided the FTC with everything it needs to make a decision.
The declaration also reportedly means that regulators cannot come to a decision before the deadline, said the outlet, with sources saying that points to the major drugstore’s hope for a Trump-selected commissioner who will be inclined to OK the merger.