Albertsons and Rite Aid scrap plans to merge

Albertsons and Rite Aid have abruptly abandoned their planned merger.The retailers announced late Wed...

Posted: Aug 9, 2018 10:35 AM
Updated: Aug 9, 2018 10:35 AM

Albertsons and Rite Aid have abruptly abandoned their planned merger.

The retailers announced late Wednesday that they are calling off the deal because of pushback from shareholders who complained it undervalued Rite Aid. The merger would have created a new company with about $83 billion in annual sales and 4,900 locations across the United States.

"We have heard the views expressed by our stockholders and are committed to moving forward and executing our strategic plan as a standalone company," Rite Aid CEO John Standley said in a statement.

Albertsons said in a separate statement that it disagreed with "certain Rite Aid stockholders and third-party advisory firms" that it wasn't offering enough to investors in the pharmacy group. Albertsons is "unwilling to change the terms of the merger," the grocery store chain added.

Related: Albertsons agrees to buy Rite Aid

Rite Aid said it has canceled a special shareholders meeting on the deal that was due to take place Thursday.

Neil Saunders, managing director of analysis firm GlobalData Retail, said the proposed merger was based on an "overly optimistic view."

"There was some logic in that the deal would have given Albertsons more scale in the high-growth pharmacy and health space," he said. "It would have also granted it access to some geographic areas it does not currently serve with a pharmacy offer. However, both of these things are about 'one plus one equaling two.' They are not compelling reasons for a complex and costly merger."

Related: A drug store deal gone bad: Walgreens merger with Rite Aid falls apart

Walgreens wanted to buy all of Rite Aid in 2015, but federal regulators nixed that plan on antitrust grounds. In September 2017, the two companies announced a scaled back version for nearly 2,000 of Rite Aid's stores. That left Rite Aid with around 2,600 stores.

"The future for Rite Aid is now questionable," Saunders said. "After the sell-off of stores to Walgreens, it lacks scale. Given that scale is now more critical than ever in the pharmacy and health market, it will no doubt be casting around for another entity with which it can combine."

-- Nathaniel Meyersohn contributed to this report

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 313166

Reported Deaths: 7228
CountyCasesDeaths
DeSoto21496257
Hinds20294414
Harrison17814309
Rankin13573278
Jackson13411246
Madison10066217
Lee9962173
Jones8364163
Forrest7649152
Lauderdale7181240
Lowndes6370145
Lamar621686
Lafayette6171118
Washington5323133
Bolivar4797132
Oktibbeha461498
Panola4561105
Pearl River4499145
Marshall4397103
Warren4380121
Pontotoc419572
Monroe4100133
Union409076
Neshoba4026176
Lincoln3950110
Hancock377786
Leflore3487125
Sunflower335790
Tate332484
Pike3301105
Scott315373
Alcorn311968
Yazoo310769
Itawamba299477
Copiah296465
Simpson294788
Coahoma294379
Tippah287768
Prentiss279560
Adams269582
Marion268880
Leake266273
Wayne262341
Grenada260386
Covington256381
George246848
Newton246061
Winston226881
Tishomingo225967
Jasper220848
Attala214173
Chickasaw207157
Holmes188673
Clay184754
Stone182033
Tallahatchie178140
Clarke177879
Calhoun170132
Yalobusha163337
Smith162234
Walthall133845
Greene130333
Lawrence128323
Montgomery126742
Noxubee126734
Perry125938
Amite122842
Carroll121728
Webster114532
Jefferson Davis106932
Tunica104826
Claiborne102230
Benton99125
Humphreys96133
Kemper95428
Franklin83623
Quitman80216
Choctaw76118
Wilkinson66930
Jefferson65428
Sharkey50317
Issaquena1686
Unassigned00

Alabama Coronavirus Cases

Cases: 530325

Reported Deaths: 10966
CountyCasesDeaths
Jefferson763971520
Mobile40908804
Madison34717503
Tuscaloosa25730452
Montgomery24314588
Shelby23401249
Baldwin21107307
Lee15856171
Calhoun14488314
Morgan14282279
Etowah13819353
Marshall12210223
Houston10557280
Elmore10044205
Limestone9954150
Cullman9649193
St. Clair9644242
Lauderdale9419241
DeKalb8825185
Talladega8214175
Walker7223277
Autauga6918108
Jackson6804112
Blount6651137
Colbert6292134
Coffee5506119
Dale4828111
Russell440638
Chilton4279112
Franklin425582
Covington4118118
Tallapoosa4019152
Escambia393276
Chambers3559123
Dallas3547151
Clarke350861
Marion3113100
Pike310577
Lawrence299898
Winston274072
Bibb260464
Marengo249264
Geneva249077
Pickens234160
Barbour230757
Hale222677
Butler215969
Fayette212062
Henry188744
Cherokee184445
Randolph179941
Monroe177340
Washington167039
Macon158750
Clay156156
Crenshaw152057
Cleburne148741
Lamar141934
Lowndes138653
Wilcox127030
Bullock123041
Conecuh110129
Perry107526
Coosa107128
Sumter104332
Greene92334
Choctaw60424
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