Walgreens Tumbles on Costly Global Deal (Update 1)
In March, Credit Suisse analyst Edward Kelly said that a Rite Aid acquisition would help Walgreen push against drugstore competition by pharmacy benefits managers like CVS Caremark and Express Scripts, which completed a $29 billion 2011 acquisition of Medco Health Solutions(MHS) .
Tuesday's deal counters those expectations and Walgreens previous M&A history, as it shifts its strategy internationally. In 2010, Walgreen spent $1.1 billion to buy New York-based drug-store chain Duane Reade from private equity firm Oak Hill Capital and was a bidder for Longs Drug Stores, another U.S. chain that was eventually bought by CVS Caremark.
-- Written by Antoine Gara in New York