Why Rite Aid's Shares Crashed 19% in September
Rite Aid (NYSE: RAD) and Walgreens Boots Alliance (NASDAQ: WBA) were forced by regulators to reduce the number of stores Rite Aid is selling to Walgreens and that news, plus Rite Aid's lackluster quarterly financial results, caused Rite Aid's shares to lose 19% of their value last month, according to S&P Global Market Intelligence.
Rite Aid had been trying to cut a deal to sell itself lock, stock, and barrel to Walgreens. However, regulators balked at that proposal earlier this year, forcing the two companies to come up with a new plan. Instead, Walgreens agreed to acquire 2,186 Rite Aid stores and three distribution centers for $5.18 billion in cash.
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Source: Fool.com
