Rite Aid Corporation (NYSE: RAD) is having an incredible day in the market so far today, and for good reason. For some time now, investors have been eyeing the stock, hoping for an acquisition to take place. Quite a while ago, Walgreens Boots (NASDAQ: WBA) made an offer to acquire the company, one which was accepted. However, the merger has been blocked in legal red tape. Nonetheless, news broke today that suggests the deal may go through. As a result, investor excitement ensued, leading to gains in the stock and prompting an alert from our partners at Trade Ideas. At the moment (12:02), RAD is trading at $3.40 per share after a gain of $0.29 per share or 9.32% thus far today.
RAD Gains With WBA Merger On The Horizons
As mentioned above, Rite Aid has been on a bit of a tumultuous ride as of late. It all started when the company accepted an offer by Walgreens. However, the merger didn’t quite go as planned. Ultimately, two of the largest pharmacies in the United States merging has the potential to create a monopoly. One which could ultimately have a negative effect on consumers and the economy alike. As a result, the merger was blocked for review.
At this point, the merger hasn’t been approved or rejected by authorities. However, it seems as though we’re getting closer and closer to the day of the decision. Interestingly enough, there are several reports circulating at the moment that suggest that an approval is going to come down the line relatively soon and that a merger will indeed take place. Considering the quality of sources associated with these reports, chances are good that they are accurate. Nonetheless, it ain’t over until the figurative fat lady sings, and we haven’t heard that loud, high-pitch note as of yet.
Stop wasting your time! Find winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on RAD. In particular, we’re interested in following the story of the potential merger between RAD and WBA. While it looks like an approval is on the horizon, it’s important to keep in mind that anything can happen in the market. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!