US pharmacy giant Walgreens has dropped plans to sell Boots, saying buyers are unable to raise enough funds due to instability in financial markets.
Walgreens said it has various offers for the pharmacy business after listing Boots for sale in January.
But none of the offers adequately reflected the UK pharmacy chain’s high potential value, it said.
The Walgreens Boots Alliance said it will keep Boots and the #7 beauty brand.
Potential buyers reportedly included Indian billionaire Mukesh Ambani and US buyout firm Apollo Global Management, who submitted a bid valuing the company at around £5bn.
The Walgreens merger deal for Boots in 2014 valued the company at around £9bn at the time.
Walgreens said it backed down from plans to sell Boots following an “unexpected and dramatic shift” in financial markets.
“Due to market volatility severely impacting the availability of financing, no third party has been able to submit an offer that reasonably reflects the high potential value of Boots and No7 Beauty Company,” it said.
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Rosalind Brewer, managing director of Walgreens Boots Alliance, said, “We have now completed a thorough review of Boots and No7 Beauty Company, the findings of which reflect rapidly evolving and challenging financial market conditions that are beyond our control.”
“It’s an exciting time for these companies, which are uniquely positioned to continue to capitalize on the future opportunities presented by the growing health and beauty markets.
“The Board and I remain confident that Boots and No7 Beauty Company have strong fundamental value and, longer term, we will remain open to all opportunities to maximize shareholder value for these companies and our entire business.”
Boots’ 173-year-old business spans 2,200 stores across the UK.
In 2020, Walgreens cut 4,000 jobs at Boots and closed some of its stores as the Covid-19 pandemic hit sales.
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