Albertsons to buy rest of Rite Aid at $24 Billion.
The U.S. giant supermarket company, Albertsons wants to expand its drug store business through a deal to buy Rite Aid.
Rite Aid is the third largest drug store chain in the world.
As some part of the Rite Aid had been sold to Walgreens Boots Alliance and reaming part of the company will be scoop by Albertsons.
The new corporate entity would have a value of roughly $24 billion, including debt, the Wall Street Journal Reported.
Albertsons shareholders would own 70.4% to 72% of the combined company when the transaction closes, while Rite Aid shareholders would own 28% to 29.6%.
Vies to compete with Amazon
Current Rite Aid Chairman and CEO, John Standley will become the chief executive of the combined company, and Bob Miller, the chairman and CEO of Albertsons, will serve as chairman of the combined corporation’s board.
The deal with Albertsons gives Rite Aid an expansion route as the company vies to compete with Amazon, which is eyeing a potential entry into healthcare, as well as retailing giant Walmart.
Miller said that the combined company would enable them to even better serve the valuable pharmacy customer by providing a fully integrated one-stop-shop for their customers’ food, health, and wellness needs.