FTC examines competition issues related to merger of Longs with Walgreen or CVS Caremark

By Lisa Kerner

Charlotte, N.C., Sept. 25 - The Federal Trade Commission asked Longs Drug Stores Corp. for information related to Walgreen Co.'s unsolicited, non-binding expression of interest to acquire the company, it was announced on Thursday.

According to Longs, the FTC's 25-page request indicates that the proposed acquisition from Walgreen, a Deerfield, Ill., drugstore operator, "may substantially lessen competition among retail pharmacies" in parts of California, Nevada and Hawaii.

The FTC also asked for information regarding markets that had not been examined in its previous review of the proposed Longs/CVS Caremark Corp. transaction. Those markets include Longs' operations in Hawaii as well as its mail-order business, a Longs news release said.

It was previously reported that Long's board of directors rejected Walgreen's proposed $75.00-per-share offer.

Longs' board is recommending that its stockholders tender their shares in the offer by CVS Caremark, which agreed to acquire the Walnut Creek, Calif., drugstore chain for $2.9 billion, including debt, or $71.50 per share, a prior news release said.

CVS Caremark, a Woonsocket, R.I., drugstore chain, extended its tender offer for Longs to midnight ET on Oct. 15 on news of Walgreen's offer.

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