Why Rite Aid Corporation (RAD) Shares Soared Today

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Rite Aid Corporation (NYSE:RAD) shares boomed Monday as its proposed merger with Walgreens Boots Alliance Inc (NASDAQ:WBA) inched forward this week.

Rite AidThere’s been talks to the two retailers merging for a while with uncertainty regarding whether or not the Federal Trade Commission (FTC) would approve such a move due to antitrust considerations, but the two companies received a boost Monday, according to sources close to the matter.

CTFN article claims that antitrust lawyers — including a former top official of the U.S. Department of Justice — are leaning towards approving the deal that would unite Rite Aid’s assets with Walgreens. The source added that the FTC approving such a deal is more likely to happen that not.

The deadline in which the agency has to decide whether or not to give the green light is July 7, which is only a week and a half away.

RAD stock rose 30.2% Monday on the news, while WBA shareholders have also benefited from the news, albeit to a lesser degree, with the stock posting a 1.6% gain by day’s end.

Fred’s, Inc. (NASDAQ:FRED) shares were skyrocketing too, surging 19.9% as the discount store and pharmacy is in the midst of a deal with Rite Aid and Walgreens to buy 865 stores plus assets related to store operations. The acquisition of these stores and assets amounts to $950 million in cash.


Article printed from InvestorPlace Media, https://investorplace.com/2017/06/rite-aid-corporation-rad/.

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