Drugstore chain operator Walgreens Boots Alliance Inc (WBA.O) reported a better-than-expected quarterly profit, helped by lower costs achieved through its cost-cutting plan.
The largest U.S. drugstore chain by store count said on Tuesday it would buy rival Rite Aid Corp (RAD.N) for $9.4 billion to widen its footprint in the United States and negotiate for lower drug costs.
Walgreens in April launched a plan to cut $1.5 billion in costs by the end of fiscal 2017, which would include store closures and freezing salary hikes for senior U.S. executives.
Sales at U.S. Walgreens and Duane Reade stores open at least a year rose 6.4 percent, benefiting from higher purchases per buyer.
http://www.reuters.com/article/2015/10/28/us-walgreens-boots-results-idUSKCN0SM19B20151028
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