Walgreens Boots Alliance, operator of the Walgreens drug store chain, reported that it will purchase rival Rite Aid in a $17.2 billion deal, which would potentially shape the U.S. drug store industry into two giant chains.
The new agreement is set on combining the second and third largest U.S. drug store operators and will raise the already existing competition level between Walgreens and CVS Health.
According to a statement from Walgreens, “Working together, decisions will be made over time regarding the integration of the two companies, ultimately creating a fully harmonized portfolio of stores and infrastructure.”
Rite Aid will continue to operate under its brand name for the time being and is expected to save more than $1 billion in purchasing power and cost cuts.
