Supermarket conglomerate Albertsons Cos. will purchase the portion of Rite Aid Corp. that Walgreens Boots Alliance has not acquired, according to Reuters. Observers say the move is an example of how pharmacy retailers are consolidating their operations to compete against Amazon.com and other online rivals.

Albertsons says the deal will allow it to unify its own retail pharmacy operations under the Rite Aid brand, giving it more influence with patients and with pharmaceuticals companies alike.

“The new company will have an expanded footprint and be ranked first or second in 66 percent of the top metropolitan areas in the United States and will be ranked first or second in 70 percent of pharmacy locations,” Albertsons said.

Albertsons owns about 2,300 supermarket stores and also operates about 1,800 pharmacies. Rite Aid now owns nearly 2,600 drugstores, having sold off 1,932 pharmacies to Walgreens for nearly $4.4 billion. 

Walgreens Boots Alliance had wanted to buy up the entire Rite Aid chain, but federal regulators nixed that deal.

As for the current transaction, the combined company would generate roughly $83 billion in revenue and operate some 4,350 pharmacy counters and 320 clinics across 38 states and in the District of Columbia, the companies said in a prepared statement. Most Albertsons pharmacies will be rebranded as Rite Aid stores, and the company will continue to operate stand-alone Rite Aid units as well.