The billionaire Issa brothers, owners of supermarket chain Asda, are reportedly considering a takeover of health and beauty giant Boots.
Mohsin and Zuber Issa, who also own petrol empire EG Group, are said to have already held early-stage discussions over a potential business deal.
Boots has around 2,200 stores in the UK, employing more than 50,000 people, and reports suggest a takeover could be worth as much as £10billion.
Asda, which was bought out by the Issa brothers for £6.8million in 2020, declined to comment on reports of a takeover approach for Boots, first published by the Mail on Sunday.
Mohsin and Zuber Issa started Euro Garages with a single petrol station in Bury, Greater Manchester, before building it up to form a network of forecourts across the UK.
They formed EG Group with the backing of TDR Capital and expanded into Europe before the brothers and the private equity firm teamed up to acquire Asda in 2020.
Boots' US-based parent company Walgreens Boots Alliance confirmed earlier this month it has launched a strategic review of the pharmacy chain - although has made no formal comment on a potential sale just yet.
Walgreens chief executive Rosalind Brewer said the process was still at an “exploratory stage” but that “we do expect to move quickly”.
She added: “This review is very much in line with our renewed priorities and strategic direction, in particular, our increased focus on US healthcare.”
A separate comment from a Walgreens spokesperson, sent to The Mirror, said: “We can confirm that Walgreens Boots Alliance, in line with its recently announced priorities and strategic direction that include a greater focus on US healthcare, has announced a strategic review, primarily focused on our successful Boots business, including No7 Beauty Company.
“This strategic review is at an exploratory stage and further announcements will be made in due course, after the right decision has been reached for Boots’ future and for all stakeholders.”
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But reports suggest an auction of the retailer is set to start in the coming weeks, with the process to be run by Goldman Sachs, according to Sky News.
Investment firms Bain Capital and CVC Capital Partners are said to be looking at a joint bid to buyout Boots, but have declined to comment on speculation.
Advent, Carlyle and KKR, which owned the retailer before selling to Walgreens, are also reported to have shown interest. Each firm has also not yet commented.
Walgreens first bought a stake in Boots in 2012 and then bought out the rest of the company two years later in 2014, in a deal worth $22billion (£16.1 billion).
Speaking to the Nottingham Post, chief executive at East Midlands Chamber, Scott Knowles, said he would be following the developments at Boots "closely".
"The Boots name goes hand in hand with Nottingham as one of the key chapters in the city's history," he said.
"It is also one of the most important employers in the city and wider region, so the local business community and labour market will be watching the reported developments closely.
"Everyone here will of course have high hopes and expectations that the company remains a central part of Nottingham's fabric for many decades to come."
