Walgreens Boots Alliance Inc. announced Monday it would reduce the amount it will pay for rival Rite Aid by at least $2 billion, after the two companies struggled to get antitrust enforces to bless their deal. The two companies will now sell more stores as they seek to satisfy regulators at the Federal Trade Commission, which has been reviewing the combination. Walgreens in October 2015 agreed to purchase Rite Aid for $9 a share, or around $9.4 billion to form a drugstore chain with more than 10,000 U.S. stores. FTC offers raised concerns that a combined company would hold too much sway in negotiations with pharmacy-benefits managers like Express Scripts Holding Co, who handle corporate and government drug plans. To accommodate for the sale of additional stores both companies agreed to extend their merger deadline to July. Shares of Rite Aid tumbled 17% to $5.72 on Monday while shares of Walgreens shares barely moved.
You’re In Trouble…
US and UK regulators have fined Deutsche Bank $630 million for allowing clients to launder money from Russia. Under the scheme, clients illegally moved $10 billion out of Russia by buying shares in Moscow using roubles before their counterparts in the bank’s London office sold the same stock at the same prices using pounds. During the U.S and UK investigation authorities found the trades were carried out between 2011 and 2015. In addition to paying the settlement, the bank will also be required to hire an outside monitor to review its internal compliance measures. The bank had already set aside money to the cover the settlement.
Asia: Asian markets fell on Tuesday after yesterday’s Wall Street sell off. Several markets remain closed for New Year celebrations.
Europe: European shares closed lower on Monday as global investors reacted to Trump’s temporary immigration band.
U.S: U.S markets closed lower on Monday as investors wonder if Trump can really uphold all his promises. DJIA: -122.65 19,971.13 NASDAQ: -47.07 5,613.71 S&P: -13.79 2,280.90
Word of The Day:
A fixed-interest, tradable U.S government debt security with a maturity of more than 10 years. Treasury bonds pay semi-annual interest payments and the income received is taxed only at the federal level.
Dinner or Drink:
1 1/2 oz. Absolut® Citron vodka
1 oz. Grand Marnier® orange liqueur
1/2 oz. grenadine syrup
1 oz. orange juice
Shake all ingredients with ice and strain into an old-fashioned glass.
Like our drink today, click here for more.