Rite Aid Corporation, a drugstore chain and Albertsons, a grocery company both based in the United States has come to a mutual agreement to terminate plans of merger.
The two corporations had planned on combining their companies in hopes to offer a better service to their customers. The merger was supposed to help them stay in the competition, especially that their competitors like Amazon and Walmart are paving their way on the industry.
Many shareholders from Rite Aid are not in favor of the merger that was supposed to happen and that is the reason why the agreement resulted into termination.
After the event took place, Rite Aid’s share has decreased by about 21 percent. It is evident that the deal between the two had a great effect on their respective corporations.
The terms and conditions of Albertsons was the reason why a lot did not agree to the merger, saying that it might not benefit the drugstore chain and will just lead into a misunderstanding. Another was that there was not enough consideration given to Rite Aid’s shareholders and of course, who would want that.
The company is willing to reconsider, though Albertsons had a strong will and decided not to change the terms of the agreement. Therefore, after a thorough consideration and discussion with its shareholders, Rite Aid decided to operate on their own.
It is quite frustrating to know that events like this had to take place, considering that both companies did have a good impact on one another.