Impact of Walgreens purchase of Rite-Aid unclear

It remains unclear whether either of Island County’s Rite Aid pharmacies, or its Walgreens store, will be affected by the $17.2 billion purchase of Rite Aid Corp. by Walgreens Boots Alliance proposed last week.

It remains unclear whether either of Island County’s Rite Aid pharmacies, or its Walgreens store, will be affected by the $17.2 billion purchase of Rite Aid Corp. by Walgreens Boots Alliance proposed last week.

Rite Aid, of Camp Hill, Pa. owns one pharmacy in Freeland and another in Oak Harbor. It took over the Freeland store from family-owned Linds in January and, in August, bought the pharmacy in Coupeville from Linds, transferring customers’ records to its Oak Harbor location.

Walgreens, of Deerfield, Ill., has one store on Whidbey Island, located in Oak Harbor. The Wall Street Journal on Oct. 28 reported that “some analysts” estimated Walgreens will have to get rid of up to 400 stores to pass antitrust muster, without citing their names.

Rite Aid will become a wholly owned subsidiary of Walgreens and “is expected to initially operate under its existing brand name,” Walgreens said in an Oct. 27 prepared statement.

Walgreens seemed to suggest that some stores might be closed: “Decisions will be made over time regarding the integration of the two companies, ultimately creating a fully harmonized portfolio of stores and infrastructure,” it said.

Walgreens spokesperson Phil Caruso on Thursday declined to comment on the matter. Managers at both local Rite Aid stores also declined to comment.

The deal will likely face tough antitrust scrutiny, and the Federal Trade Commission could well require the divestiture of some stores. The companies have notable overlap in some areas of the U.S. Pending antitrust approval, the purchase is expected to close in mid-2016.