ROSEVILLE, CALIF. (December 21, 2016) — Rite Aid and Walgreens have entered into an agreement with Fred's Pharmacy to sell 865 undisclosed stores in an attempt to satisfy antitrust concerns amid their pending merger. The exact locations, reported to be on the “East and West Coasts,” are not likely to be released until Federal Trade Commission (FTC) approval, which is expected sometime in 2017.
“Our members security and the provisions and protections provided through our Rite Aid contract are the top priority for us,” said Jacques Loveall, president of UFCW 8-Golden State.
Fred’s has reportedly indicated it will honor existing union contracts. Other terms of the deal call for Fred's to operate the "acquired stores under the Rite Aid banner during a transition period."
The exchange with Fred's Pharmacy is anticipated to take place several months after Walgreens planned purchase of Rite Aid is completed, all of which is subject to pending FTC approval.
President Loveall said, “We will continue to watch the proposed sale and pending merger and will keep our members updated and informed as developments happen.”
UFCW 8-Golden State represents some 35,000 members who work in grocery and drug stores, food-processing plants and offices from the Oregon border in the north to Kern County in the south.