Walgreens said to face FTC concerns over Rite Aid proposal

According to sources, the US Federal Trade Commission (FTC) is not yet satisfied with concessions offered by Walgreen's to complete its purchase of Rite Aid, as reported Seattle Times Friday.

• According to the people, the FTC does not believe Walgreen's proposal to sell 865 stores is sufficient, concluding that the divestiture does not go far enough to protect competition.

• A source noted that it is not clear whether agency officials have issued a formed recommendation.

• A second person said that the FTC is unlikely to complete its review by the companies' January 27 deadline to complete the $9.4-billion transaction.

• The merged entity would surpass CVS Health as the leading pharmacy chain based on the number of stores.

• Shares in Rite Aid plunged as much as 11.6 percent on the news, while shares in Walgreen's were down 2.4 percent.