Drugs store Walgreens Boots Alliance (WBA) has announced that it will buy smaller rival Rite Aid (RAD) for $17.2 billion. If the deal gets regulatory approval the merger will create a hefty rival to the largest U.S. drug store operator CVS (CVS). Rite Aid is currently the third largest pharmacy operator in the States, with a market share of around 10.3 percent. Walgreens now expects to save over $1 billion if the merger is completed via cost cuts and combined purchasing power. Local pharmacies are scrambling to keep up with the changing healthcare system while also fending off competition from online and mail order prescription companies. Wholesale retailers like Costco are also attempting to get in on discounted prescription drug sales. Rite Aid and Walgreens stock jumped on the earnings news.
More from Video
Amid the Selling, Here's the Big Question Now
How quickly do we find support, is what we'll want to know now, as the correction is occurring while economic optimism builds.
One Tweet Pulls the Rug Out From Under the Indexes
Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.
A Technical Look at the New Dow Jones Industrial Average
Salesforce, Amgen and Honeywell will give a lift to the DJIA going forward.
Conagra Brands Looks Tastier After Its Upgrade to Buy
CAG has hung onto the bulk of its recent gains, and could rise to the $50 area, according to the charts and indicators.
Biogen Bulls Get a Lift From Quant Upgrade and Strengthening Charts
Breaking down an approach to the long side of this biotech stock.