CVS to divest 120 Revco stores to settle antitrust claim
May. 30, 1997
WASHINGTON (AP) _ CVS Corp. will sell 120 Revco drugstores or pharmacy counters to eliminate antitrust concerns over the merger of the two chains, the Federal Trade Commission announced Friday.
The FTC said 114 stores in Virginia and six pharmacy counters in the Binghamton, N.Y., area are involved.
CVS said later that it completed the merger, creating the nation's second-largest drugstore chain in terms of sales. Earlier this week, shareholders of the two companies approved the $2.8 billion deal.
With $10.9 billion in sales, the combined CVS-Revco chain would rank behind Walgreen Co., which is based in the Chicago suburb of Deerfield, Ill., and had $11.8 billion in sales last year.
The Trade Commission had raised concerns that the combination would reduce competition in the two regions, resulting in the potential for higher prices for consumers.
Under the settlement, Eckerd Corp. of Largo, Fla., a pharmacy subsidiary of J.C. Penney Co., will purchase the 114 Virginia stores. Those stores are located in the Norfolk, Virginia Beach, Newport News, Richmond, Petersburg and Charlottesville areas.
In the Binghamton market, the pharmacy assets of six Revco stores will be sold to Medicine Shoppe of St. Louis, a subsidiary of Cardinal Health, one of the nation's largest wholesale distributors of pharmaceuticals.