The $17 billion Walgreens-Rite Aid deal looks like it's in trouble (RAD, WBA)
Thomson Reuters
Traders have lost faith in Walgreens' giant deal to buy Rite Aid.
Rite Aid's shares were sliding Wednesday after a report from the New York Post said the supermarket chain Kroger may no longer be interested in acquiring 650 stores from the two companies as part of that deal.
Walgreens and Rite Aid would have to sell the stores to gain antitrust approval for the deal.
Rite Aid's stock is trading around $6.70, well below the $9 a share Walgreens is offering for the company.
According to Bloomberg, that means traders see only an 18% likelihood that the deal will close.
There are other reasons for traders to be concerned. The Federal Trade Commission is likely to find the divestiture package insufficient, Bloomberg reported Wednesday, citing Capital Forum.
The regulator's concerns are related specifically to the pharmacy benefit management, according to the report.
Walgreens is scheduled to report quarterly earnings on Thursday. Shareholders will be looking for a material update on the deal.
Thomson Reuters
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