Walgreens Faces U.S. Antitrust Concerns Over Rite Aid Fix
- FTC staff described as worried about sale of stores to Fred’s
- Walgreens agreement to buy Rite Aid set to expire Jan. 27
Pedestrians pass in front of a Walgreens Boots Alliance Inc. store in downtown Chicago, Illinois, U.S., on Tuesday, Oct. 18, 2016.
Photographer: Christopher Dilts/BloombergWalgreens Boots Alliance Inc.’s plan to win U.S. antitrust clearance for its acquisition of Rite Aid Corp. hasn’t satisfied officials at the Federal Trade Commission, according to people familiar with the matter.
With just a week left before the companies’ deadline to complete the deal, FTC lawyers aren’t sold on Walgreens’s proposal to sell 865 drugstores to Fred’s Inc. to get approval to take over Rite Aid, said two people, who asked not to be identified because the discussions are confidential. The officials are concerned the sale doesn’t go far enough to preserve competition that would be lost in the tie-up, one of the people said.