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Rite Aid shares plunge after Walgreens cuts acquisition price

Rite Aid stock sinks after Walgreens lowers acquisition price
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Rite Aid stock sinks after Walgreens lowers acquisition price

Rite Aid shares shed more than 17 percent Monday after Walgreens Boots Alliance lowered its acquisition price for the retail pharmacy chain's shares. Walgreens will also divest up to 1,200 Rite Aid stores, 200 more than the original agreement stipulated.

The new terms also set shares of Rite Aid at a maximum of $7 per share and $6.50 minimum. Walgreens agreed to purchase Rite Aid in October 2015, initially for $9 per share in cash.

In an email to CNBC, a spokesman for Rite Aid says the additional divestment is to obtain regulatory approval from the Federal Trade Commission.

All this means Rite Aid shareholders are getting less than they would have under the original deal, with a payout coming months later than expected. The deal is now expected to close by the end of July this year, according to a press release. The agreement will see Walgreens acquire all outstanding shares of Rite Aid.

Rite Aid shares one month performance