Shares for Rite Aid soared after the news broke that Walgreens will purchase the chain to combine and become one massive drug store.
The New York Times reported that Walgreens Boots Alliance said it would buy its competitor for $9.4 billion cash.
According to the Wall Street Journal, news of the merger had stocks for both companies on the upside Tuesday. Shares for Rite Aid rose about 40 percent and shares for Walgreens increased by about 4 percent after the announcement.
The merger of the two giants, which are the second and third-largest drugstore chains behind CVS, will create one massive mega chain for pharmaceutical and other shopping needs. Rite Aid would also keep its brand name for the time being.
"Working together, decisions will be made over time regarding the integration of the two companies, ultimately creating a fully harmonized portfolio of stores and infrastructure," Walgreens said in a statement. “Today’s announcement is another step in Walgreens Boots Alliance’s global development and continues our profitable growth strategy. In both mature and newer markets across the world, our approach is to advance and broaden the delivery of retail health, well-being and beauty products and services."
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