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A woman shops at a Walgreens drugstore in Los Angeles. The chain is in a partnership with Britain’s Alliance Boots, and the two have struck a deal with pharmaceutical distributor AmerisourceBergen.
A woman shops at a Walgreens drugstore in Los Angeles. The chain is in a partnership with Britain’s Alliance Boots, and the two have struck a deal with pharmaceutical distributor AmerisourceBergen.
(NICK UT/AP)

BREAKINGVIEWS

Drugstore partnership adds helping to full plate

Reuters Breakingviews delivers agenda-setting financial insight. Its global correspondents react to stories as they develop, delivering sharp and provocative commentary on big financial news as it breaks.

Walgreen and Alliance Boots have heaped another helping on their already full plate. The cross-border merger of the U.S. and European drugstore chains isn’t finished, but they are adding AmerisourceBergen to the mix. The distributor signed a 10-year purchasing agreement with the two companies and granted them warrants to build a minority stake. Cost savings and negotiating heft may follow, but the combined firms’ management could be stretched thin.