Walgreens and Rite Aid expected to continue with the merger

According to the New York Post,  Walgreens and Rite Aid are not expected to terminate their merger agreement on January 27 if they fail to get regulatory approval by then, citing a source close to the companies.

Further, President Trump named Maureen Ohlhausen, a Republican on the Federal Trade Commission, as acting FTC chairwoman, as investors worry whether the regulator will approve the Walgreens Boots Alliance (WBA) takeover of its smaller drug store rival.

Walgreens originally agreed to buy Rite Aid for $9 a share back in October 2015. Late last year, Rite Aid agreed to sell 865 stores to smaller rival Fred’s (FRED) to try to satisfy antitrust regulators.

The FTC was widely expected to OK the merger deal before Obama left office on Jan. 20, but reportedly is concerned that the sale of stores to Fred’s would not be sufficient.