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+--- Thread: WBA to buy RAD - dayum (/showthread.php?tid=1378)
WBA to buy RAD - dayum - Dividend Watcher - 10-27-2015
This one came out of nowhere. Despite the rumors that were circulating around 9 months ago, I didn't think they'd undertake such a big acquisition so soon after purchasing the balance of Alliance Boots; especially in the retail sector.
Pessina is a pretty shrewd businessman and he must have a plan. Around here, Rite Aid stores usually show up in the same neighborhoods as the Walgreens. Then I read this:
Quote:Both Rite Aid and Walgreens have a major presence in states like California, New York and Massachusetts, while in others, including Florida, Texas and Illinois, there isn't any overlap.
So maybe these is an opportunity along with the higher volume allowing better discounts. Guess the partnership with ABC didn't get them as far as they wanted.
RAD shareholders will be happy. Almost a 100% premium on an all cash deal.
Guess our dividend increases won't be outsized in the near future.
RE: WBA to buy RAD - dayum - Dividendsrule - 10-27-2015
"Guess our dividend increases won't be outsized in the near future."
But in the far future....Hoping for some nice growth. I love the big boats...I'm very happy with this.
RE: WBA to buy RAD - dayum - Kerim - 10-28-2015
The market is not too pleased about this, it seems. Rite Aid could be tough for WBA to swallow and integrate smoothly, so it could cause some real headaches in the short to medium term. I'm not having a strong gut reaction to it one way or the other. Will continue to hold my shares of WBA for the long term.
RE: WBA to buy RAD - dayum - rapidacid - 10-28-2015
What The Rite-Aid Buyout Means For You
RE: WBA to buy RAD - dayum - Dividendsrule - 10-28-2015
Love Tim!
I'm just seeing a bigger footprint here...I could imagine integration would be challenging. I also see them closing stores- they are eliminating competition. A stronger WBA longer term.
RE: WBA to buy RAD - dayum - ExDripper - 10-31-2015
(10-28-2015, 12:04 PM)Dividendsrule Wrote: Love Tim!
I'm just seeing a bigger footprint here...I could imagine integration would be challenging. I also see them closing stores- they are eliminating competition. A stronger WBA longer term.
Eliminating competition is not always a good move, at least for customers. WAG has done a decent job of alienating pharmacy customers, pharmacists, and physicians. We personally stopped using them quite a few years ago. Maybe WBA is entering the too-big-to-fail realm.