When the deal was announced in February, the combination of Rite Aid and Albertson’s was being called the creation of a pharmacy powerhouse.
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That deal is no more.
On Thursday night, the two companies mutually agreed to call off their merger agreement.
“While we believed in the merits of the combination with Albertson’s, we have heard the views expressed by our stockholders and are committed to moving forward and executing our strategic plan as a standalone company”, said Rite aid Chairman and Chief Executive John Standley.
Rite Aid stockholders basically felt the offer undervalued the company, but Albertson’s declined to change the terms of the deal.
Since the deal was announced, Rite aid shares have fallen 22 percent.
Rite Aid shares rose more than 2 percent in after-hours trading.
Under the terms of the agreement, neither company will be responsible for payments to the other party.
The deal, when announced would have created a retail giant worth about $24 billion with annual revenues of $83 billion in its first year, serving 40 million customers in 38 states.
As a result, the special meeting of stockholders that was scheduled for August 9 has been cancelled.