Ftc Will Sue To Block Drug Store Merger

The Federal Trade Commission voted Wednesday to file a lawsuit to block the merger of the nation’s two largest drug store chains.

Commissioners decided on a 5-0 vote that Rite Aid Corp.’s planned $1.8 billion purchase of Revco D.S. Inc. would lead to higher prices.

“Rite Aid-Revco would have significantly more pharmacy locations than its closest competition and would have the ability to increase prices and harm consumers,” said George Cary, deputy director of the FTC’s Bureau of Competition.

“If allowed to proceed, the combined Rite Aid-Revco firm would be the dominant pharmacy chain in numerous eastern and Midwestern metropolitan areas.”

The FTC said it will file a complaint Friday in U.S. District Court in Cleveland. Companion suits were expected from attorneys general in Ohio, New York and other states.