Privately-held Albertsons Companies is planning to buy the portion of Rite Aid that is not being sold to Walgreens Boots Alliance.
The combined value of Albertsons and Rite Aid, including debt, is around $24 billion. The proposed cash-and-stock deal will give Albertsons shareholders ownership of 71% and Rite Aid stakeholders 29% in the combined company.
Rite Aid owns a benefits management company along with thousands of drug stores and is valued at around $2.3 billion. Albertsons is the owner of supermarket chains such as Safeway and Tom Thumb.
This merger is said to be an effort by both companies to deal with the increasing competition in the retail food space from Amazon and Walmart.
The deal is also expected to position Albertsons to go public. At present, the company is privately-owned by investors including private equity firm Cerberus Capital.
Most Popular
Key metrics from Shopify’s (SHOP) Q1 2024 earnings results
Shopify Inc. (NYSE: SHOP) reported first quarter 2024 earnings results today. Revenue increased 23% to $1.9 billion compared to the prior-year period. Gross Merchandise Volume (GMV) increased 23% year-over-year to
EA Earnings: Electronic Arts reports lower revenues for Q4 2024
Video game publisher Electronic Arts (NASDAQ: EA) Tuesday reported a decline in revenues for the fourth quarter of 2024. Meanwhile, the top line came in slightly above analysts' estimates. Fourth-quarter
What to look for when Home Depot (HD) reports Q1 2024 earnings
Shares of The Home Depot (NYSE: HD) stayed red on Tuesday. The stock has gained 17% over the past 12 months. The home improvement retailer is scheduled to report its
