Kai Clarke

Analyst: Rite Aid Could Be Next Takeover Target

February 19, 2010

FROM RETAILWIRE:
UBS Securities' analyst Neil Currie thinks that once Walgreens has had the opportunity to complete its purchase of Duane Reade, it might turn its attention to taking over some or all of Rite Aid's 4,800 stores. How likely do you think all or parts of Rite Aid will be sold?      [more...]

Wal-Mart is not an acquisition player for Rite Aid. The store footprint and format are all wrong and the costs to make these Wal-Mart "friendly" would far outweigh the benefits.

For Rite Aid to be split up, it would first have to declare bankruptcy or go through a formal sale by a third party (usually a bank) that has a vested interest in how their stores and assets are divided up. Because of their size, any Rite Aid asset re-allocation would involve the FTC which would also require some sort of government oversight for all involved parties. All of this is still a bit premature until the last breath is taken from Rite Aid and they formally go up for sale.