America's top retailers in trouble

A $10 billion mega-merger between two of the nation’s largest drug stores is usually no more.

Walgreens and also also also Rite Aid announced Thursday of which they are no longer combining forces. Not entirely, at least.

‘;
var storytext = document.getElementById(‘storytext’);
var heightToSkip = 0;

function resetValues()
{
totalHeight = 0;
targetChildElement = null;
}

if(storytext == null)
{
console.log(“Error finding storytext element for SA embed”);
return;
}

for ( i = 0; i 0)
{
heightToSkip -= storytext.childNodes[i].clientHeight;
resetValues();
}
else if(heightToSkip minHeight && targetChildElement != null)
{
//console.log(“total height = ” + totalHeight);
//console.log(“childNode = ” + targetChildElement);

storytext.childNodes[targetChildElement].insertAdjacentHTML(‘afterend’, smartAssetDiv);
smartasset = document.getElementById(‘smartasset-article’);
smartasset.style.float = ‘left’; // allows module to have text float to right
smartasset.style.marginRight =’20px’;
smartasset.style.marginBottom =’25px’;

//console.log(storytext.childNodes[targetChildElement]);
//SMARTASSET.setDivIndex(targetChildElement);
SMARTASSET.setSmartAssetScript();

/* bail out since we’re done */
break;
}

}

/* div with id=”smartassetcontainer”. Sanity check to only embed once */
else if (storytext.childNodes[i].nodeName.toLowerCase() === ‘div’ && storytext.childNodes[i].id !== “undefined” && storytext.childNodes[i].id === “smartassetcontainer”) {
break;
}

/* div with id=”ie_column” */
else if (storytext.childNodes[i].nodeName.toLowerCase() === ‘div’ && storytext.childNodes[i].id !== “undefined” && storytext.childNodes[i].id === “ie_column”) {
resetValues();
}

/* embeds via twitter, facebook, youtube */
else if (storytext.childNodes[i].nodeName.toLowerCase() === ‘div’ && storytext.childNodes[i].classList.contains(’embed’)) {
resetValues();
}

/* sy88pgw video player */
else if (storytext.childNodes[i].nodeName.toLowerCase() === ‘div’ && storytext.childNodes[i].classList.contains(‘cnnplayer’)) {
resetValues();
}

/* images */
else if (storytext.childNodes[i].nodeName.toLowerCase() === ‘img’)
{
resetValues();
}

/* images stored in figure tags */
else if (storytext.childNodes[i].nodeName.toLowerCase() === ‘figure’)
{
if(storytext.childNodes[i].clientWidth

Instead, Walgreens agreed to buy 2,186 Rite Aid stores for $5.2 billion. of which will essentially cut Rite Aid in half, leaving the idea with 2,350 stores after the deal is usually done.

The merger agreement faced intense scrutiny via the start. the idea could have left the United States with just two major pharmacy chains: Walgreens and also also also CVS (CVS). The Federal Trade Commission was scheduled to rule on the merger Thursday, and also also also was widely likely to nix the idea.

The old deal was two years within the doing. Initially a $17 billion deal announced in October 2015, the agreement was reworked in December 2016 and also also also scaled back in January 2017.

As part of the revised deal, Southeastern drug chain Fred’s could have purchased about 1,000 Rite Aid stores. of which’s no longer happening, and also also also Fred’s stock fell by 20% in premarket trading.

Michael Polzin, a spokesman for Walgreens, declined to comment on whether the looming FTC decision finally scuttled the deal. although he acknowledged of which the FTC had raised concerns, and also also also the company is usually confident of which buying a couple thousand Rite Aid stores will pass muster with regulators.

The Rite Aid pharmacies of which Walgreens plans to buy will eventually be rebranded as Walgreens stores. of which won’t happen for a while, though: The deal first needs to gain regulatory approval, and also also also then Walgreens plans to buy up the Rite Aid stores over the course of six months.

Because there are so many stores within the deal, the idea could take two to three years for the thousands of Rite Aid stores to become Walgreens stores. So save your Wellness+ card.

Related: Store closings have tripled so far This particular year

Walgreens will pay Rite Aid $325 million for canceling the merger. although the idea expects the store purchases to save the idea more than $400 million over time.

The deal comes at a crucial time for Rite Aid and also also also the retail business as a whole. Both companies also reported their quarterly financials, and also also also they told two very different stories: Walgreen’s earnings rose 5%, sales were up 2% and also also also the company even raised its outlook because of This particular quarter. Rite Aid meanwhile reported a loss and also also also sales of which fell by 5% last last quarter.

Shares of Rite Aid (RAD) tanked 20% in premarket trading, after falling 20% on Wednesday and also also also 7% on Tuesday. Walgreens (WBA) rose 4%.

sy88pgw (brand-new York) First published June 29, 2017: 8:33 AM ET