DEERFIELD, Ill. – Walgreens Boots Alliance will pay around $17.2 billion to buy Rite Aid, Marketing Daily reports. The merger will combine the second-largest (Walgreens) with the third-biggest (Rite Aid) drugstores in the United States. Because each company has many stores in New York, California and Michigan, the Federal Trade Commission will likely require some divestitures in those areas.

“The deal would combine the second and third largest drug-store operators and, if it gets regulatory approval, intensify the already fierce competition between Walgreens and CVS Health,” writes Nathan Bomey. “CVS has 58% market share in the pharmacy and drug store business, Walgreens controls 31% and Rite Aid has 10%, according to research firm IBISWorld. The industry has $263 billion in annual revenue and $10.3 billion in profit.”

Currently, Walgreens has around 8,300 stores in the United States (approximately 13,200 across the globe). The chain is snapping up chains, such as Duane Reade, USA Drug and drugstore.com.

Walgreens isn't the only drugstore buying other chains. In 2007, CVS purchased CareMark and in June 2015, CVS bought Target's in-house pharmacies. For the foreseeable future, Rite Aid will not change its name on the close to 4,600 stores. In 2006, Rite Aid also acquired Brooks and Eckerd, two smaller drugstore chains.

“I expect that the companies will argue that the competition is now broader than just the Rite Aids, Walgreens and CVSs of the world,” said Jeffrey S. Spigel, head of the antitrust practice at the law firm King & Spalding. “They’ll argue that you need to take into account competition from pharmacies that are in grocery stores, that are in Walmarts, that sell through mail order.”