The daily business briefing: June 29, 2017
Homeland Security tightens security for U.S.-bound flights, Walgreens nixes Rite Aid merger plan, and more


1. Homeland Security announces new security measures for U.S.-bound flights
The Department of Homeland Security on Wednesday announced new security measures for U.S.-bound flights from overseas. Homeland Security Secretary John Kelly said the measures "will be both seen and unseen, and they will be phased in over time." The airlines will have to comply with tighter screening of electronic devices and more effective use of bomb sniffing dogs, but laptops and tablets will be allowed in carry-on bags. Kelly said that any carrier that does not comply could be included in a ban on laptops in carry-on luggage. Since March, passengers on flights arriving in the U.S. from certain Muslim-majority countries have been barred from carrying devices larger than a cellphone on board, although those restrictions could be lifted on airlines and airports that adopt new security policies. "The threat has not diminished," Kelly said. "In fact, I am concerned that we are seeing renewed interest on the part of terrorist groups to go after the aviation sector."
2. Walgreens and Rite Aid replace merger plan with smaller deal
Walgreens Boots Alliance said Thursday that it had ended its $9.4 billion merger deal with Rite Aid Corp., and would instead buy 2,186 Rite Aid stores for $5.2 billion in cash. The new deal, which would cover half of Rite Aid's stores, also would give Rite Aid the option of joining Walgreens' group purchasing organization. This now-scrapped merger deal was announced in October 2015 and revised in January of this year, but it faced intense scrutiny by antitrust regulators. Once the new deal secures approval, Walgreens will take over the Rite Aid stores and other assets over six months, and convert them to the Walgreens brand. Walgreens shares rose by 1.7 percent in premarket trading, while Rite Aid shares fell by 6.1 percent.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
MarketWatch The Wall Street Journal
3. Blue Apron lowers IPO price
Blue Apron on Wednesday priced its looming IPO at $10 per share, after saying in an updated filing with the Securities and Exchange Commission that it was lowering its range to $10 to $11 per share, down from an initial range of $15 to $17 per share. Although initial stock offering pricing often fluctuates as companies gauge interest, Blue Apron's drop marks a significant change for what is viewed as the year's next big IPO. At $10 a share, Blue Apron, which delivers fresh ingredients for curated recipes to subscribers, would be valued at just below $2 billion. Some analysts suspect Amazon's massive $13.7 billion bid for Whole Foods two weeks ago raised a cloud over Blue Apron, potentially dampening investor enthusiasm for the IPO.
4. Fed clears big banks to buy back stock
The Federal Reserve on Wednesday gave the nation's 34 biggest banks approval to return extra capital to shareholders through stock buybacks and dividends. The banks, such as JPMorgan Chase and Bank of America, passed the second part of the Fed's annual stress test to assess the banks' ability to weather a financial crisis. Just one bank, Capital One, will have to resubmit its plan by the end of the year, although the Fed will let it proceed with its capital plan for now. Together, the banks have a capital cushion of $1.2 trillion, an increase of $750 billion since 2009. Fed Governor Jerome Powell said the stress test process "has motivated all of the largest banks to achieve healthy capital levels and most to substantially improve their capital planning processes."
5. Sycamore Partners to buy Staples for $6.9 billion
Private equity firm Sycamore Partners said Wednesday that it would buy office supply retailer Staples for $6.9 billion. Sycamore Partners already owns several big retailers, including Talbots, the Limited, and Hot Topic, and it said Staples was an attractive acquisition because it is an "iconic brand." Still, the deal comes after Staples has seen sales and gross profits fall for each of the last four full years. The company has been shedding stores as it struggles to compete with Office Depot, online rivals such as Amazon, big-box chains such as Walmart and Target, and warehouse clubs such as Costco.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.
-
Gandhi arrests: Narendra Modi's 'vendetta' against India's opposition
The Explainer Another episode threatens to spark uproar in the Indian PM's long-running battle against the country's first family
By Harriet Marsden, The Week UK
-
How the woke right gained power in the US
Under the radar The term has grown in prominence since Donald Trump returned to the White House
By Chas Newkey-Burden, The Week UK
-
Codeword: April 24, 2025
The Week's daily codeword puzzle
By The Week Staff
-
Why Russia removed the Taliban's terrorist designation
The Explainer Russia had designated the Taliban as a terrorist group over 20 years ago
By Justin Klawans, The Week US
-
Inside the Israel-Turkey geopolitical dance across Syria
THE EXPLAINER As Syria struggles in the wake of the Assad regime's collapse, its neighbors are carefully coordinating to avoid potential military confrontations
By Rafi Schwartz, The Week US
-
'Like a sound from hell': Serbia and sonic weapons
The Explainer Half a million people sign petition alleging Serbian police used an illegal 'sound cannon' to disrupt anti-government protests
By Abby Wilson
-
The arrest of the Philippines' former president leaves the country's drug war in disarray
In the Spotlight Rodrigo Duterte was arrested by the ICC earlier this month
By Justin Klawans, The Week US
-
Ukrainian election: who could replace Zelenskyy?
The Explainer Donald Trump's 'dictator' jibe raises pressure on Ukraine to the polls while the country is under martial law
By Sorcha Bradley, The Week UK
-
Why Serbian protesters set off smoke bombs in parliament
THE EXPLAINER Ongoing anti-corruption protests erupted into full view this week as Serbian protesters threw the country's legislature into chaos
By Rafi Schwartz, The Week US
-
Who is the Hat Man? 'Shadow people' and sleep paralysis
In Depth 'Sleep demons' have plagued our dreams throughout the centuries, but the explanation could be medical
By The Week Staff
-
Why Assad fell so fast
The Explainer The newly liberated Syria is in an incredibly precarious position, but it's too soon to succumb to defeatist gloom
By The Week UK