Walgreens (Deerfield, Ill.) will have to divest between 500 and 1000 of its retail stores to move ahead with its plans to acquire Rite Aid (Camp Hill, Pa.).
The decision comes from U.S. antitrust regulators who are reviewing the transaction.
According to Forbes, Walgreens expects that even with shedding up to 1000 stores, the consolidation with Rite Aid would benefit the company’s bottom line within the first year alone. Within three to four years of completing the acquisition (which is expected to close later this year), the company expects benefits to excess $1 billion.
Currently, Walgreens operates 8200 stores nationally, while Rite Aid operates 4500. Its main competitor, CVS Health (Woonsocket, R.I.) currently owns 9600 pharmacy drugstores.