The Huge Merger That Shouldn't Happen

Updated

This video is part of our "Talking Stocks" series, in which Motley Fool analyst Austin Smith discusses trends across the investing universe.

In today's edition, Austin talks about the recently developed opinion that Walgreen (NYS: WAG) and Rite Aid (NYS: RAD) should merge into one company to counter the potential threat from the Express Scripts (NAS: ESRX) and Medco Health (NYS: MHS) merger. Ultimately, Austin thinks that Rite Aid's crushing debt level would be a major inhibiting factor to growth in the future, and would undermine any additional strength the companies would gain from merging.

Growing through acquisitions is one way for Walgreen to realize quick growth, but it's not necessarily the best. Here at the Fool we champion true organic growth instead, and that's the type of growth we're seeing out of one rule-breaking multibagger. You can learn more about this health-care titan of tomorrow by clicking here.

At the time thisarticle was published Austin Smith owns shares of SUPERVALU.Motley Fool newsletter serviceshave recommended buying shares of Medco Health Solutions. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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