Deerfield, Ill.-based Walgreens Boots Alliance is in negotiations to revise its previous agreement to purchase individual Camp Hill, Pa.-based Rite Aid stores to satisfy the Federal Trade Commission's antitrust concerns, sources familiar with the matter told Bloomberg.
Here are five things to know about the proposed negotiations.
1. Three sources familiar with the matter told Bloomberg Walgreens is in the final stages of negotiations with the FTC to acquire more than 2,000 Rite Aid stores.
2. Though details of the proposed transaction have not been released, sources said the terms of the modified deal may be released as early as Sept. 18. Sources also said the number of stores Walgreens would acquire "won't change dramatically," according to the report.
3. The FTC is reportedly nearing the end of its review of the proposed deal, and must either approve the transaction or issue a second request seeking additional information. A revised filing by Walgreens would allow the agency an additional 30 days to reach a final decision on the proposed merger.
4. The modified deal marks Walgreens' fourth attempt to merge with Rite Aid. Walgreens initially declared plans to merge with Rite Aid in October 2015 for $9.4 billion. However, the organizations revised the deal in January after the FTC expressed antitrust concerns.
5. The revamped deal proposed in January amounted to roughly $7.4 billion and called for Rite Aid to divest approximately 1,200 stores to Memphis, Tenn.-based pharmacy chain Fred's. The plan failed to garner FTC approval, however, and officials scrapped the proposed deal in June.