Amazon (AMZN) has shown an interest in the pharmacy business. What else is new?
Walgreens (WBA) announced an agreement to buy Rite Aid (RAD) nearly eighteen months ago. Since that time, they (Walgreens) has been through regulatory hell. The suggestion was that they would have to divest some of the Rite Aid stores to preserve competition and prevent a monopolistic situation.
Walgreens agrees to sell 900+ Rite Aid store to Freds ( FRED). This ran into regulatory problems because the acquisition of the Rite Aid stores was more than double what Fred’s was worth at the time.
An announcement is expected soon and the rumor is that the deal will not be allowed to go through.
Maybe Amazon should contact someone at Walgreens and buy some or all of their Rite Aid stores. There would be their pharmacy business and a local brick and mortar presence. They could also cut costs by closing some of the Rite Aid stores that appear on the brink of condemnation as it is!
Put this on top of the Whole Foods (WFM) acquisition and you send a message to all supermarket chains that they need to do something or expect to be taken out.
DISCLOSURE: This article was written for informational purposes only. It is not intended as investment advice and should not be relied upon as such. Consult with a qualified financial advisor or tax professional to determine the proper investment plan for you and your circumstances. I do not personally own or plan to purchase any investments spoken of here.