Height Securities Sees FTC Approval of Walgreens (WBA)/Rite Aid (RAD) Deal

October 13, 2016 8:28 AM EDT
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Height Securities analyst Nils Tracy believes the FTC will approve Walgreens' (NYSE: WBA) acquisition of Rite Aid (NYSE: RAD) and believes that market concerns are overblown.

Tracy commented, "We believe that the Rite Aid (RAD)/Walgreens (WBA) transaction will gain FTC approval and that market concerns are overblown. As we discussed in our August 3 report, the biggest antitrust risk comes from the FTC’s sufficiency determination. While the FTC has made statements about increased antitrust enforcement, we believe that the market definition process and potential remedies are well along in the RAD/WBA transaction. The FTC is most likely reviewing the transaction under a local market definition, and the extended timeline could be due to a number of related factors. Overall, we believe that there has been little change in antitrust risk to the transaction over the past few months."

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