There’s another major M&A deal involving a Canadian company for investors to digest Thursday.

U.S. drugstore chain Rite Aid confirmed a deal to purchase the Eckerd and Brooks chains from Canada’s Jean Coutu Group for about US$3.4 billion in cash and stock. The deal will add about 1,800 stores to Rite Aid’s existing 3,300 locations.

Jean Coutu is getting a 32% stake in Rite Aid, making it the biggest Rite Aid stockholder.

In today’s economic news, corporate operating profits grew marginally in the second quarter following a first quarter decline.

Statistics Canada said corporate operating profits were $57 billion, or 0.7% above first quarter levels. That was well below the average quarterly increases of 4.1% registered in 2005.

Despite the recent lull, profits were at their second highest level ever, the government agency said.

The Canadian dollar opened at US90.13¢, up 0.27 of a cent.

South of the border, the U.S. Commerce Department said demand for durable goods fell 2.4% in July as orders for cars, civilian aircraft and electrical equipment weakened.

Meanwhile, U.S. initial jobless claims declined in the latest week.

Data on July new home sales in the U.S. are due at 10:00 ET. On Wednesday, the National Association of Realtors said July existing-home sales fell 4.1% to a seasonally adjusted annual rate of 6.33 million, the slowest pace since January 2004. The decline was sharper than the 0.9% decline expected by Wall Street.

Crude-oil prices climbed 3¢ to $71.79 a barrel early Thursday.

In more M&A news, China Construction Bank agreed to buy the Hong Kong retail banking business of Bank of America for HK$9.71 billion (US$1.25 billion). Bank of America already had a minority stake in China Construction Bank.

In earnings news, TD Bank said it boosting its dividend after third-quarter profit jumped 94% to $796 million, from a year-earlier $411 million. The quarterly dividend will rise 4¢, or 9%, to 48¢.

In overseas markets, the Japanese Nikkei 225 index lost 202.41 points, or 1.25%, to finish at 15,960.62 points on the Tokyo Stock Exchange.

In Hong Kong, the blue-chip Hang Seng Index fell 197.7 points, or 1.2%, to 16,883.04 points.

European stock markets turned around in light volume, with the German DAX 30 up 0.5% after early losses.

Toronto stocks ended slightly down Wednesday, as a drop in resource stocks offset gains in the financial sector.

The S&P/TSX composite index drifted down 6.07 points, or 0.05%, to 12,195.08, after hitting an early session high of 12,226.60 and mid-day low of 12,153.98.

Half of the 10 TSX main sub-groups were down, with the energy sector off 0.82%.

The S&P/TSX Venture Exchange index was up 7.74, or 0.29%, to 2,641.91.

In New York, markets were lower as investors showed concern over geopolitical stability.

The Dow Jones industrial average closed down 41.94 points at 11,297.90. The Nasdaq composite index fell 15.36 points to 2,134.66 while the S&P 500 lost 5.83 points to 1,292.99.