An acquisition will help walgreens in many ways.

Economies of scale and a reduction in the

workforce required will be a huge factor in favour of this acquisition as it will help cut down
costs and increase profits. On the other hand diseconomies of scale and employee unrest is
a threat that could cause an increase in prices and that along with the large cost of the
acquisition is a major disadvantage. The ability of walgreens to gain a greater market space
and the elimination of potential competition is an advantage, while conflicts between the
two companies is a serious problem that could also cause a loss of control. Rapid growth
and the potential of a higher international presence will make it easier to introduce new
products. Regulatory problems and share holder speculation will cause the share price of
walgreens to fall which is extremely bad for the company.