Shares of Tennessee-based pharmacy chain Fred's (FRED) were up nearly 75% on Tuesday after the company announced an agreement to purchase 865 Rite Aid (RAD) - Get Report stores and other assets for $950 million in cash. The deal doubles Fred's pharmacy footprint, adding to its current 650 stores. This comes after Walgreens' (WBA) - Get Report acquisition of Rite Aid for $9.45 billion, which is still awaiting approval by the Federal Trade Commission. Walgreens had said it needed time to divest anywhere from 500 to 1,000 stores to comply with federal antitrust regulations. The deal is expected to close in the first half of 2017, making Fred's the third-largest drugstore chain in the U.S. Shares of Walgreens also moved higher on the news.