RAD and Walgreens agree to terminate merger (per Bloomberg TV)
Just broke on Bloomberg. RAD jumped 11% on the news but reversed and now has dropped nearly 10% 20% premarket.
From the press release:
Rite Aid Enters Into an Agreement with Walgreens Boots Alliance to Sell 2,186 Rite Aid Stores and Related Assets for $5.175 Billion
• Rite Aid and Walgreens Boots Alliance Mutually Agree to Terminate Previous Agreement Under Which Walgreens Boots Alliance Was to Acquire All Outstanding Shares of Rite Aid
• Rite Aid to Receive $325 Million Termination Fee
• Asset Sale Repositions Rite Aid as an Independent, Multi-Regional Drugstore Chain and Pharmacy Benefits Manager With Compelling Footprint in Key Markets and Strong Financial Position
• Proceeds to Be Used to Significantly Reduce Debt and Strengthen Balance Sheet
• Agreement Provides Rite Aid With 10-Year Pharmaceutical Purchase Option Through WBA Affiliate
• Company Reports Fiscal 2018 First Quarter Results