Home / FINANCE / Fred’s crashes after the devise to buy scarcely 1,000 Rite Aid stores is consummated (FRED, RAD, WBA)

Fred’s crashes after the devise to buy scarcely 1,000 Rite Aid stores is consummated (FRED, RAD, WBA)

A pharmacist selects drugs inside her pharmacy in Bordeaux, France, Sep 15, 2015. REUTERS/Regis Duvignau/File PhotoThomson Reuters

Walgreens and Rite Aid on Thursday pronounced they scrapped their $17.2 billion merger, following inspection from US antitrust regulators. 

This sent shockwaves to Fred’s, a pharmacy sequence that had approaching to  buy scarcely 1,000 stores from Rite Aid. Fred’s shares cratered by as most as 24% in early trading. 

Fred’s announced in Dec that it entered an asset-purchase agreement with Rite Aid and Walgreens to buy 865 stores and some egghead properties, as good as assume some liabilities. But this agreement was consummated with a finish of a merger.

This is a unsatisfactory outcome; however, a stop of a transaction has no impact on a company’s mutation devise or a ability to execute,” pronounced Michael Bloom, Fred’s CEO. 

Fred’s pronounced it would accept $25 million in payment for a costs compared with a consummated transaction. 

The pharmacy sequence pronounced Wednesday that it adopted a rights plan, famous as a poison pill, to revoke chances that a customer would benefit control of a association by open-market purchases of the stock. It has a trigger of 10% and will end on Sep 25, Reuters reported. 

Walgreens said Thursday that it entered into an agreement to acquire 2,186 Rite Aid stores and associated resources for $5.18 billion.

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