Thursday, February 22, 2018

Don’t Expect the Albertsons-Rite Aid Merger to Produce a Contender

NREI Online

Grocery chain Albertsons Co. and drug store operator Rite Aid announced plans on Tuesday for a merger estimated to be worth $24 billion. The transaction will feature a stock and cash exchange between the companies’ shareholders that would allow the grocery store operator to go public smoothly after 10 years of private ownership.

Industry professionals who have studied the companies’ operations closely, however, are not convinced that the combination will create an entity strong enough to compete as a heavy hitter against sector leaders Walgreens and Amazon.. . . more