Rite Aid and Albertsons call it quits

Rite Aid has scrapped plans for a merger with grocery chain Albertsons after the deal to create a leader in food and health attracted opposition from a major shareholder.

Albertsons announced in February that it planned to buy Rite Aid’s more than 2,500 stores with the goal of becoming “a leader in food, health and wellness.” But a major shareholder and two proxy advisory firms came out against the deal.

Rite Aid Chairman and CEO John Standley said this week that after hearing the views of shareholders, the drugstore chain will move forward with its strategic plan as a stand-alone company. The company also said its board will consider unspecified governance changes.

Privately held Albertsons Companies, based in Boise, Idaho, was offering either a share of its stock and $1.83 in cash or slightly more than one Albertsons share for every 10 Rite Aid shares.

The deal’s failure sent Rite Aid shares down 11.5 percent Thursday.