10-27-2015, 10:47 PM
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:
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.
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.
=====
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan