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Walgreens Boots Alliance and Rite Aid Corporation have announced that they have entered into an agreement to sell 865 Rite Aid stores and certain assets related to store operations to Fred’s, Inc. for $950 million in an all-cash transaction.

The companies said that "the agreement is being entered into to respond to concerns identified by the FTC in its review of the proposed acquisition of Rite Aid by Walgreens Boots Alliance, which was announced in October 2015. Walgreens Boots Alliance is actively engaged in discussions with the FTC regarding the transaction and is working toward a close of the Rite Aid acquisition in early calendar 2017."

The deal is subject to federal Trade Commission (FTC) approval.

The story notes that Fred's and its subsidiaries "currently operate 647 stores and three specialty pharmacy-only stores across 15 states in the southeastern U.S." This new deal will make it the nation's third largest drug store chain.
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