Walgreens Boots Alliance, Inc. (NASDAQ: WBA) has decided not to merge with Rite Aid Corp. (NYSE: RAD) In a press release from the holding company of the Walgreen and Boots U.K, WBA announced its plans to purchase 2,186 stores for $5.175 billion cash, with an option expiring May 2019.The deal will go through pending approval from the Federal Trade Commission and the Department of Justice after typical procedural filings, expected to take place within six months.
In addition, WBA released positive third quarter results. Citing a more favorable tax rate, net earnings increased 5.3% to $1.2 billion and earnings per share increased 5.9% to $1.07 compared to the prior year. An increase in sales amounted to $30.1 billion dollars, about a 2% increase. The company’s Q3 results are in line with their previous two quarters. The news resulted in a 3.5% gain in WBA stock, currently trading around $79.00 per share.
Walgreens Boots Alliance formed in 2014 through the combination of the Walgreen company and Alliance Boots. This partnership created the largest retail pharmacy in the U.S. and Europe, currently conducting business in 25 countries. They own No7, Botanics, Liz Earle, and Soap & Glory product lines as well as the New York based pharmacy Duane Reade.