Walgreens to close more than 500 stores


Walgreens Boots Alliance expects to close more than the 500 locations previously announced to satisfy the Federal Trade Commission and finalize its acquisition of Rite Aid.

Walgreens agreed to buy Rite Aid last October for $17.2 billion and identified nearly 500 stores to close to remedy issues off overlap and market dominance raised by the FTC.

But following discussion with the FTC, "Walgreens Boots Alliance now expects that the most likely outcome will be that the parties will be required to divest more than the 500 stores previously communicated, but still continues to expect that fewer than 1,000 stores will be required to be divested," the company said in a statement.

The company is sticking with its plan to move forward and believes the acquisition will be accretive to its adjusted earnings per share in the first full year after closing of the transaction. It also expects to realize synergies from the acquisition of more than $1 billion within three to four years after closing.

Walgreens hopes to close the deal in the second half of this calendar year.