Walgreens says will buy smaller drugstore rival Rite-Aid

October 27, 2015 10:45 PM

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Walgreens says will buy smaller drugstore rival Rite-Aid

Drugstore chain Walgreens Boots Alliance Inc (WBA.O) said on Tuesday it would acquire smaller peer Rite Aid Corp (RAD.N) for $9.4 billion to widen its footprint in the United States and negotiate for lower drug costs.

The $9-a-share cash deal, worth $17.2 billion including acquired debt, will increase the footprint of Walgreens, the largest U.S. drugstore chain, by half. It will also improve its ability to negotiate for low drug prices and fend off rivals from Wal-Mart Stores Inc (WMT.N) to online pharmacies.

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