>> Walgreens on Thursday saying it's scraping the deal to buy Rite Aid after struggling to win antitrust approval from the government. The news hitting Rite Aid shares hard, the stock dropping as much as 27% on Thursday. Pharmacy department store, Fred's, also feeling the pain after the announcement. Its stock also shedding more than a quarter of its value at one point Thursday morning as junking the bid also puts an end to a related deal to sell as many as 1,200 Rite Aid stores to Fred's.
Walgreens shares seeing a 5% boost. The $9.5 billion deal had faced tough antitrust scrutiny from the Federal Trade Commission. As Walgreens and Rite Aid are the number one and number three drug store chains in the country, respectively. Walgreens saying that instead of the whole company, it will buy nearly half of Rite Aid's US store for just over $5 billion.
The FTC saying on Thursday, it would review that new proposal.