Walgreen announced it would purchase the remaining 55% of shares of British health and beauty retail operator Alliance Boots it does not already own for $15.3 billion in a cash-and-stock deal. The company also said it would keep its headquarters in Chicago, which squashed any hope of reorganization through a tax inversion that would allow Walgreen to pay less U.S. taxes.
Both Rite Aid and CVS Caremark (CVS) were down Wednesday morning. Rite Aid was down 4.66% to $6.24 at 9:53 a.m.
Separately, TheStreet Ratings team rates RITE AID CORP as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate RITE AID CORP (RAD) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: