Indian billionaire Mukesh Ambani is definitely interested in buying the high street Boots business, BusinessLive has been told – having considered, then dropped, a bid for Chelsea FC.
A source said Mr Ambani, who is reported to be the eighth richest on earth, is keen to build his foothold in the UK, attracted by its transparent regulations.
They said he had looked into buying Chelsea after owner Roman Abramovich was sanctioned by the Government over what it said were his links to Russian president Vladimir Putin.
A Chelsea sale is expected to be completed in May, with Todd Boehly, Sir Martin Broughton and Steve Pagliuca the remaining contenders to take the Stamford Bridge helm.
Last November Mr Ambani's Reliance Industries – which has interests in energy, petrochemicals, natural gas, retail, telecommunications, mass media, and textiles – poured cold water on reports it had been plotting a takeover of UK telecoms giant BT.
According to the Financial Times, Reliance is now working with New York-based Apollo on a deal that could see Boots open in India and across Asia.
BusinessLive has been told that four people representing Reliance Industries have visited the Boots headquarters in Nottingham and its offices in London to carry out “due diligence” – before reporting back to the board in Mumbai.
The source said: “It was basically a courtesy visit, but confidential – two of the team were from a London firm of accountants.
“The words they used were that it was a “very fruitful” visit and they were going to report that back to the board.
“The business had also done due diligence on Chelsea, but they decided to pull out of that. I understand they visited the Department for Digital, Culture, Media & Sport as part of that process and they visited the financial advisors to Chelsea.
“A meeting was held at a golf course and hotel complex that Reliance owns outside London.
“They were interested in BT too last year but nothing came of that – I think some of that business was seen to be to rigidly linked to the UK.
“They are keen to have a UK presence and a presence on the UK stock exchange.
“The thing about this country which appeals to them isn’t banking or insurance, but is our regulatory system – knowing that you can invest and that the regulators will do the right thing to protect your interests.
“The team that visited Boots said they were positive about the visit and reported that back.
“If they don’t buy Boots they will keep looking because this country has a lot to offer.”
It has been reported that Boots, which owns more than 2,200 UK stores, could be valued at as much as £6 billion.
It is understood that a mid-May deadline has been set for final bids for the high street chemist.
Asda’s owners, the billionaire Issa brothers and TDR Capital, are also reported to be taking part in the takeover process.
However, Sky News reported that an early frontrunner, a joint bid by Bain Capital and CVC Capital Partners, has been withdrawn.
