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REFILE-Rite Aid posts profit due to fees from failed Walgreens merger deal
September 28, 2017 / 11:21 AM / 23 days ago

REFILE-Rite Aid posts profit due to fees from failed Walgreens merger deal

(Corrects spelling of earlier in second paragraph)

Sept 28 (Reuters) - Drug store operator Rite Aid Corp reported a rise in quarterly net income on the back of a termination fee it got due to Walgreens Boots Alliance Inc’s failed attempt to buy its smaller rival.

Rite Aid’s net income rose to $170.7 million, or 16 cents per share, in the second quarter ended Sept. 2, from $14.8 million, or 1 cent per share, a year earlier.

The latest quarter includes a $325 million termination fee.

Total revenue fell to $7.68 billion from $8.03 billion.

Walgreens scrapped its deal to buy Rite Aid outright in June after failing to win antitrust approval, and said it would instead buy nearly half of its smaller rival’s U.S. stores, which also failed to pass regulatory muster.

Rite Aid finally got regulatory approval earlier this month to sell 1,932 stores to Walgreens for $4.38 billion. (Reporting by Uday Sampath in Bengaluru; Editing by Savio D‘Souza)

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