US drugstore Walgreens buying peer Rite Aid

New York

AS companies throughout the universe of the healthcare industry accelerate the pace of consolidation, two of the country's biggest drugstore chains have agreed to combine to create a new giant.

Walgreens Boots Alliance said on Tuesday that it would buy Rite Aid for more than US$9.4 billion in cash, significantly bolstering its influence with drugmakers and pharmacy benefit managers. But the combination may draw a sceptical eye from government regulators concerned about the retail pharmacy market effectively shrinking to only a few big chains.