The largest drug store chain, Walgreens, with over 13,000 stores world wide is buying Rite Aid, the third largest drug chain world wide with over 4,000 stores for a reported $9.41 billion. They are the first and third largest based on the number of stores operated.
The Associated Press in their report indicated the deal would allow Walgreens more buying power that would result in lower prices to Walgreens customers. But this writer says don't bet on it and the rosy picture Walgreens is trying to paint. History tells us this buy out is for the purpose of eliminating competition and the opportunity to control prices, especially the prices on prescription drugs.
After the buy out is finalized, Walgreens in due time will start closing some of its own stores and Rite Aid stores and laying off employees. That is what large buy outs of other companies accomplish. And of course the executives will make out big time.
Its the same old sad story that cost people their jobs and the extension of transferring wealth from the middle class to the wealthy.
This commentary written by Joe Lorio
