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Rite Aid-Walgreens Merger Update, Analysts Review, and Amazon Too?

NEW YORK, NY / ACCESSWIRE / June 16, 2017 / Traders News Source, a leading independent equity research and corporate access firm focused on small and mid-cap public companies, is issuing a comprehensive report with no obligation on Rite Aid Corporation (RAD), a national drugstore chain operator. Traders News Source previously covered the proposed merger with Walgreens on April 26, 2017. We discussed the many delays the deal had already experienced, and what was likely to happen next.

On May 8, 2017, Walgreens and Rite Aid certified compliance with the Federal Trade Commission's (FTC) request for additional information regarding the proposed merger. In short, this move forces the FTC to decide within 60 days whether to allow the transaction to proceed or sue to block it.

Where does the proposed merger stand? Analysts review and price target: READ MORE.

Copy and paste to your browser may be required to view the report - http://tradersnewssource.com/rad-update/.

A primary concern is that Fred's, Inc., slated to buy hundreds of Rite Aid stores, has a larger footprint that would not be able to replicate Rite Aid's market presence. On June 9th, Fred's announced that it had secured financing commitments to complete the purchase. Past failed divestiture plans in the retail sector may also spur the FTC to action. In multiple instances, companies that agreed to divest assets to receive FTC approval later bought them back when the acquirer went bankrupt. These transactions included Hertz/Dollar Thrifty (2012) and Albertsons/Safeway (2015).

To muddy the issue further, Amazon seems to be making moves toward an entry into the pharmacy market. In the United States alone, more than 4 billion prescriptions are ordered every year. In 2015, patients, insurance companies, and other payers spent an estimated $300 billion on prescription drugs. If competition really does bring products closer to cost; Amazon has the potential to be a disruptive force in the pharmacy industry.

Our full report includes the possible impact of Amazon and Fred's on the pharmacy space: READ MORE

Copy and paste to your browser may be required to view the report - http://tradersnewssource.com/rad-update/.


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SOURCE: Traders News Source