In a 17.2 billion dollar merger, Walgreens is buying Rite Aid. This means that the United States’ second and third largest pharmacy chains will combine for a total of 13,000 domestic retail locations. CVS, the largest chain, has 7,800 locations.
The deal still has to pass an antitrust review. Experts are unsure whether or not the deal will come to fruition considering that the Free Trade Commission blocked the Staples/Office Depot merger. Scott Mushkin of Wolfe Research is doubtful the deal will go through as described in this Wall Street Journal piece.