Rite Aid said it has established a special stockholders meeting for Aug. 9 to vote on a proposal to approve its merger with Albertsons amid opposition by some investors who’ve been trying to derail the deal.
The vote comes as some investors are rallying support for a late effort to get what they hope will be a better deal. The vote is for shareholders of record as of Friday, June 22, the company said in a statement Thursday.
At issue is a $24 billion merger with grocery store giant Albertsons announced in February that would result in Rite Aid shareholders owning about 30% of the combined new company. The combination of Rite Aid, which operates RediClinic, and Albertsons would create a company with 319 retail health clinics and 4,345 pharmacies after the merger closes.
The vote had been expected by some analysts in July, giving opponents more time to build support for their position. Some of these investors were upset that senior executives will be paid retention bonuses even if the deal falls through. Others weren't happy that Rite Aid isn’t getting a higher price, especially as pharmacy benefit managers are suddenly an acquisition target and shareholders see value in Rite Aid’s PBM, EnvisionRxOptions, which has been growing rapidly.
For its part, Rite Aid has said the merger with Albertsons is in the best interest of its shareholders. Rite Aid executives say they expect the drugstore chain’s combination with grocer Albertsons to have a differentiated brand in the U.S. retail market that combines “food, health and wellness.”
With the transfer of more than 1,900 stores to Walgreens Boots Alliance completed, Rite Aid executives say they can now focus on the merger with Albertsons and growing its businesses. In particular, Rite Aid said it will continue to convert its drugstores to “wellness stores,” which have expanded clinical pharmacy services, health and wellness products.
