California Attorney General Rob Bonta has secured a sweeping settlement in the $24B Walgreens Conditions suit, placing strict terms on Sycamore Partners’ acquisition of Walgreens Boots Alliance Inc. The deal, unveiled Thursday after an extensive state review, aims to safeguard competition, patients, and pharmacy workers across the Golden State.
The agreement follows the official closing of Sycamore’s $24 billion takeover of Walgreens, a transaction involving nearly 450 California pharmacies. Without restrictions, regulators warned the merger could have fueled “pharmacy deserts” and left communities vulnerable.
Walgreens Bound by Seven-Year Conditions
Under the settlement, Walgreens must make every effort to keep California stores open, continue bargaining in good faith with labor unions, and avoid selling locations to the “Big 3” pharmacy benefit managers—CVS Caremark, Express Scripts, and Optum Rx. These conditions will remain binding for seven years, pending court approval.
Bonta emphasized the deal’s significance, calling it a safeguard against the alarming nationwide wave of pharmacy closures.
“This settlement is good news for Californians,” Bonta said. “Pharmacies are disappearing at an unprecedented rate, and with AB 853, we now have the authority to fight back against anti-competitive deals that threaten access to care.”
