Walgreens Boots Alliance (NASDAQ:WBA) shares were indicated higher on Tuesday before the opening bell after the company said it had struck a deal to sell off 865 Rite Aid stores to pharmacy Fred’s Inc (NASDAQ:FRED) for $950mln. Fred’s shares soared by 43% to $15.97 pre-market.
The action takes the company one step closer to ensuring its merger with Rite Aid goes through. Walgreens, the US’s second-largest pharmacy chain by sales agreed to buy smaller rival Rite Aid back in October 2015 for $17.2bn including debt.
The tie-up – which would create a global drugstore group with over 12,700 stores – has been delayed beyond plans for a deal on Oct 27 after the Federal Trade Commission demanded the two companies divest between 500 to 1,000 retail stores in order for the deal to be approved.
Walgreens shares were up 1.4% at $87.25 pre-market.