UNDATED (WKZO-AM) — A pair of drug store giants that have been duking it out for supremacy in west Michigan are coming together.
Walgreens is buying Rite Aid in a $17 billion deal that includes Rite Aid’s acquired debt.
While Walgreens has become a major player in Kalamazoo, Portage and Battle Creek, Rite Aid stores are scattered all over southwest Michigan in smaller towns, with a few in the larger cities.
The companies still have to convince federal regulators that the merger of the second and third-largest drug store chains isn’t a trust problem, especially because it will leave only two big players: Walgreens and CVS.
Retail expert Bert Flickenger thinks it’s good for everyone.
“It’s very pro-consumer, the combined companies will lower prices significantly to consumers, as well as to commercial customers,” Flickenger said.
News of the deal sent Rite Aid’s stocks surging Tuesday.
The deal is expected to close in the second half of 2016. Then, and only then, would the merged firm begin to decide which stores will stay open and which to shutter.
– John McNeill
