Walgreens Boots Alliance (WBA) signaled Thursday that it expects the Federal Trade Commission to shortly approve its tentative takeover of opposition drugstore sequence Rite Aid (RAD), promulgation shares of both drugstores aloft in a stock marketplace today.Walgreens pronounced it is “exploring intensity divestiture remedies” as talks continue. It expects a retailers will have to sell some-more than 500 stores total yet fewer than 1,000. Walgreens also expects a $17.2 billion, $9-a-share deal to tighten in a second half of a year.
Back in February, Walgreen-Rite Aid capitulation skepticism was widespread, yet Rite Aid shares rose scarcely 8% final month on renewed optimism.
Walgreens still expects a deal, initial announced in Oct 2015, will be accretive to practiced gain per share in a initial year after a transaction close. It also continues to see some-more than $1 billion in synergies, entirely satisfied within 3 to 4 years.
Walgreens batch rose 1.9% to 84.42 in morning trade. Rite Aid jumped 6.3% to 8.24. Rival drugstore sequence CVS Health (CVS) dipped 0.1%.
IBD’S TAKE: Walgreens is in a downtrend going behind some-more than a year. But shares privileged insurgency during 83.88 on Thursday, violation out of a brief converging to a two-month high in a larger consolidation.