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Walgreens Boots Alliance US$9.4bn Rite Aid deal collapses; outlines new, scaled down plans

Revenues, meanwhile, were around US$400mln ahead of analysts’ median estimates at US$30.1bn

Walgreens
Walgreens is now expected to buy half of Rite Aid's stores
Walgreens Boots Alliance Inc (NASDAQ:WBA) and Rite Aide Corp (NYSE:RAD) have reportedly terminated their US$9.4bn merger plans amid regulator concerns.
 
The pair have instead reached a new deal which will see Walgreens acquire half Rite Aid's stores for US$5.1bn, according to the Wall Street Journal.
The news emerged as Walgreens posted second-quarter adjusted earnings were slightly ahead of Wall Street estimates.
 
The international pharmacy chain posted net profit of US$1.1bn, or US$1.33 per share – around 3 cents ahead of consensus.
 
Revenues, meanwhile, were around US$400mln ahead of analysts’ median estimates at US$30.1bn.
 
The company raised the lower end of its guidance for fiscal 2017 by 8c.
 
It said it now expects adjusted diluted net earnings per share of $4.98 to $5.08.
 
Chief executive Stefano Pessina said: "Our results this quarter continued to meet our expectations as strategic partnerships brought more patients to our US pharmacies. 
 
“This led to our highest reported quarterly retail prescription market share in the US. 
 
“Our ongoing cost transformation program continues to bear fruit and we remain confident in the long term growth of our company."
 

Quick facts: Walgreens Boots Alliance Inc

Price: 35.45 USD

NASDAQ:WBA
Market: NASDAQ
Market Cap: $30.64 billion
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