Fred’s Inc.'s plans to buy 865 Rite Aid stores for $950 million is still active.
The purchase comes after Walgreens Boots Alliance was ordered by the Federal Trade Commission (FTC) to divest a certain number of Rite Aid stores to acquire Rite Aid Corp.
“As previously disclosed, to the extent the Federal Trade Commission requests that additional stores be sold, and Walgreens agrees to sell such stores, Fred’s Pharmacy has agreed to buy those stores,” Fred’s said in a statement. “The amendment and extension of the Walgreens-Rite Aid merger agreement reinforces the company’s confidence that the transaction is in the mutual best interest of Fred’s Pharmacy and all of its shareholders. Fred’s Pharmacy continues to work with the FTC, Rite Aid and Walgreens to complete the transaction and looks forward to realizing the considerable benefits the transaction will bring to customers, patients, payors, supplier partners, team members and shareholders.”
As per the agreement to purchase the stores, Fred’s could be mandated to purchase additional stores. This would happen if the FTC orders Walgreens Boots Alliance to divest more stores than the deal initially required.