• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Ex-PepsiCo CEO Indra Nooyi worked from midnight until 5 a.m. as a receptionist to pay for her Yale degree—and she says ‘respect went up’ because of it

2

Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI

3

China’s birth rate just hit its lowest point since 1949—and Trip.com cofounder James Liang thinks that’s a threat to innovation

1

Ex-PepsiCo CEO Indra Nooyi worked from midnight until 5 a.m. as a receptionist to pay for her Yale degree—and she says ‘respect went up’ because of it

2

Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI

3

China’s birth rate just hit its lowest point since 1949—and Trip.com cofounder James Liang thinks that’s a threat to innovation
Retail

Here’s Why Walgreens’ $9.4 Billion Deal to Buy Rite Aid Is in Jeopardy

Phil Wahba
By
Phil Wahba
Phil Wahba
Senior Writer
Down Arrow Button Icon
Phil Wahba
By
Phil Wahba
Phil Wahba
Senior Writer
Down Arrow Button Icon
October 19, 2016, 12:45 PM ET
A Rite Aid Corp. Store As  Earnings Figures Are Released
Vehicles sit parked outside of a Rite Aid Corp. store in Akron, Ohio, U.S., on Thursday, April 7, 2016. Rite Aide Corp., the third-largest U.S. pharmacy chain, is entering a growth phase via a combination of organic expansion and the acquisition of pharmacy benefit manager EnvisionRx. Photographer: Luke Sharrett/Bloomberg via Getty ImagesLuke Sharrett — Bloomberg via Getty Images
Add Fortune on Google for similar content.

Looks like Walgreens Boots Alliance’s (WHA) plan to buy smaller drugstore rival Rite Aid (RAD) for $9.4 billion has hit a significant snag.

Rite Aid’s shares plunged 5% on Wednesday on a New York Post report that Kroger (KR) was no longer interested in buying 650 of the Rite Aid or Walgreens stores Walgreens Boots Alliance plans to sell to placate U.S. anti-trust regulators. Kroger was one of the few potential buyers for such stores.

Separately, Reuters reported that the FTC had told Kroger that it would not be allowed to close Rite Aid stores that are near Kroger locations, a problematic set up for Kroger given the overlap both chains have. That could have led to Kroger’s decision to call off the purchases. Other media outlets have reported that the FTC has found Walgreens’ divestiture plan wanting.

On Wednesday afternoon, Rite Aid shares were trading at $6.70, far below the $9 per share price Walgreens offered a year ago, suggesting there is growing doubt the deal will go through.

Kroger declined to comment to Fortune, while a Walgreens representative referred us back to comments last month by the company stating it continued to expect the acquisition to close in the second half of this year.

Last month, Walgreens said it would likely have to divest between 500 and 1,000 stores, more than its previous estimate of 500 locations, to win the FTC’s approval for its planned acquisition of Rite Aid. Walgreens operates roughly 8,200 stores and competes most directly with CVS Health (CVS). Rite Aid, the No. 3 U.S. drugstore chain has about 5,000 stores.

The FTC has pushed back at a number of mega-deals of late, notably scuttling Staples’ (SPLS) $5.5 billion plan this year to buy office supplies rival Office Depot. (ODP)

A year ago, Walgreens announced the all-cash deal, one that would create a 13,000 store behemoth and one it claimed would give it clout with drugmakers to lower drug costs.

 

About the Author
Phil Wahba
By Phil WahbaSenior Writer
LinkedIn iconTwitter icon

Phil Wahba is a senior writer at Fortune primarily focused on leadership coverage, with a prior focus on retail.

See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Retail

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Retail

Chinese tea chain’s $1.5 million trademark infringement loss to Louis Vuitton sparks fight over who owns a flower pattern
AsiaChina
Chinese tea chain’s $1.5 million trademark infringement loss to Louis Vuitton sparks fight over who owns a flower pattern
By The Associated Press and Chan Ho-HimJuly 7, 2026
12 hours ago
Swimmer bitten in suspected shark attack at Jones Beach, prompting brief closure as the U.S. battles record-breaking heat
North AmericaNew York
Swimmer bitten in suspected shark attack at Jones Beach, prompting brief closure as the U.S. battles record-breaking heat
By The Associated PressJuly 7, 2026
13 hours ago
‘Sometimes you get along with the toughest people’: Trump moves to lift Turkey sanctions, clearing the country’s path back to F-35s
PoliticsNATO
‘Sometimes you get along with the toughest people’: Trump moves to lift Turkey sanctions, clearing the country’s path back to F-35s
By The Associated Press, Lorne Cook, Suzan Fraser, Abby Sewell and Seung Min KimJuly 7, 2026
13 hours ago
Landline phone orders spiked 277% this summer. Blame your smartphone bill
Retailsmartphones and mobile devices
Landline phone orders spiked 277% this summer. Blame your smartphone bill
By Vidhi Choudhary and Retail BrewJuly 7, 2026
13 hours ago
Trump said Walmart cut prices at his request, but the company didn’t credit the president in its decision as Trump fights off inflation backlash
RetailDonald Trump
Trump said Walmart cut prices at his request, but the company didn’t credit the president in its decision as Trump fights off inflation backlash
By The Associated Press and Josh BoakJuly 7, 2026
15 hours ago
heat
Commentaryclimate change
McKinsey Global Institute: Climate planning has prioritized floods. Heat demands equal attention
By Sylvain Johansson, Mekala Krishnan, Kanmani Chockalingam and Annabel FarrJuly 7, 2026
17 hours ago

Most Popular

Ex-PepsiCo CEO Indra Nooyi worked from midnight until 5 a.m. as a receptionist to pay for her Yale degree—and she says ‘respect went up’ because of it
Success
Ex-PepsiCo CEO Indra Nooyi worked from midnight until 5 a.m. as a receptionist to pay for her Yale degree—and she says ‘respect went up’ because of it
By Preston ForeJuly 6, 2026
1 day ago
Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI
AI
Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI
By Marco Quiroz-GutierrezJuly 5, 2026
3 days ago
China’s birth rate just hit its lowest point since 1949—and Trip.com cofounder James Liang thinks that’s a threat to innovation
Asia
China’s birth rate just hit its lowest point since 1949—and Trip.com cofounder James Liang thinks that’s a threat to innovation
By Nicholas GordonJuly 7, 2026
20 hours ago
Current price of oil as of July 6, 2026
Personal Finance
Current price of oil as of July 6, 2026
By Joseph HostetlerJuly 6, 2026
2 days ago
Even as Elon Musk calls philanthropy ‘very hard,’ everyday Americans gave a record $617 billion—despite feeling the squeeze over the cost of living
Success
Even as Elon Musk calls philanthropy ‘very hard,’ everyday Americans gave a record $617 billion—despite feeling the squeeze over the cost of living
By Preston ForeJuly 4, 2026
4 days ago
The man who ran Bernie's campaign says Democrats are still making the same mistakes with Democratic Socialists, and they should laud Mamdani's win
Politics
The man who ran Bernie's campaign says Democrats are still making the same mistakes with Democratic Socialists, and they should laud Mamdani's win
By Catherina GioinoJuly 6, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.