Walgreens and Rite Aid, the second and third largest pharmacy chains in the U.S., are set to merge. This merger will make Walgreens the largest pharmacy chain, surpassing CVS. However, before this happens, the merger needs to get through an antitrust review, which is part of a broader trend of consolidation in the healthcare industry. This trend is driven by the Affordable Care Act and an aging population.
Initially, Rite Aid stores will keep their original branding, but Walgreens plans to gradually create a unified store portfolio. The company announced this on Tuesday.
Walgreens, known as WBA, has been expanding its presence for years. They acquired New York-based Duane Reade in 2010 and Boots Alliance, a major pharmacy chain in Europe, last year. Now, Walgreens operates in 11 different countries.