Rite Aid (RAD) Stock Slides on Walgreens Deal Concerns
NEW YORK (TheStreet) -- Shares of Rite Aid (RAD) - Get Report are falling 2.05% to $6.93 this afternoon as the resolution of a Federal Trade Commission probe into the company's proposed deal with Walgreens (WBA) looks unlikely to occur any time soon, Bloomberg reports.
The FTC's heightened scrutiny of mergers like those between Humana (HUM) and Aetna (AET) could slow the process or even increase the likelihood of a rejection for the Rite Aid and Walgreens deal.
Walgreens is currently looking to sell assets to dispel antitrust concerns so it can acquire the Camp Hill, PA-based drugstore retailer.
The company has been selling stores in areas where the combined entity would have too much overlap, a source told the New York Post.
The merger, first proposed in October of 2015, values Rite Aid at $17 billion.
Separately, TheStreet Ratings rated this stock as a "hold" with a ratings score of C.
The company's strengths can be seen in multiple areas, such as its robust revenue growth and notable return on equity. However, TheStreet Ratings finds weaknesses including deteriorating net income, generally higher debt management risk and poor profit margins.
You can view the full analysis from the report here: RAD
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.