Rite Aid shares spiked by as much as 40% in trading on Tuesday after the Wall Street Journal reported that Walgreens was close to buying it.
Citing people familiar with the matter, The Journal said that a deal would value Rite Aid at close to $10 billion. The company's current market cap is about $6 billion.
A deal could be announced as soon as Wednesday, according to The Journal.
Walgreens shares rose by about 4%.
More to come ...