Walgreens profit jumps, Rite Aid deal seen closing in 2017

USA - Walgreens Boots Alliance Inc (WBA.O), the largest US drugstore operator by store count, reported a jump in quarterly profit, helped by cost-cutting and said it now expected its acquisition of Rite Aid Corp (RAD.N) to close in early 2017.

The companies said they had extended the end date of their merger agreement to Jan. 27 from Oct. 27. Walgreens also said it expected to divest stores to gain regulatory approval for the deal by the end of 2016. Net income attributable to Walgreens rose to USD 1.03 billion, or 95 cents per share, in the fourth quarter ended Aug. 31 from USD 26 million, or 2 cents per share, a year earlier.

The company had recorded a loss of USD 143 million on previously held equity interest and USD 479 million in other expenses in the year-ago quarter. (Reuters.com)