Walgreens & Rite Aid Structure Spin off of Stores in Search of Government Approval for Merger
It was announced December 20 that Walgreens has put together a plan to shed 865 stores of a combined Walgreens-Rite Aid company to gain government approval for an overall merger of the two. The sticking point to gaining Federal Trade Commission (FTC) approval was the divestiture of enough stores so as to avoid a monopoly being created by the new Walgreens-Rite Aid entity. Fred’s Pharmacy, an outfit not known much outside the South, has agreed to purchase the divested stores.
The stores in question are reportedly on the “West Coast and East Coast.” Walgreens is being tight lipped about the specific locations and an exact list will be released after expected FTC approval sometime in the first half on 2017.
Fred’s stated it will honor existing union contracts. This is good news for union members as the wages, benefits and working conditions of Local 5 members will be guaranteed going forward. Please continue to monitor the website for updates of this developing situation.