rite aid

Albertsons and Rite Aid have mutually agreed to terminate their previously announced merger plan.

Albertsons cited objections to the deal from some Rite Aid shareholders as the underlying reason for the termination.

In a statement, Albertsons noted that, “the strategic rationale of the Rite Aid combination was compelling, including the $375 million of cost synergies and $3.6 billion of identified revenue opportunities. We disagree with the conclusion of certain Rite Aid stockholders and third-party advisory firms that, although they acknowledged the strategic logic of the combination, did not believe that Albertsons was offering sufficient merger consideration to Rite Aid stockholders. Consistent with Albertsons’ disciplined approach to mergers and acquisitions, and after careful consideration of all information available to our board of directors, we were unwilling to change the terms…