Parent company Walgreens has decided against its £5 billion sale of high street chemist Boots (Matt Crossick/PA)
(Picture: PA Wire)The parent company of high street pharmacy Boots has confirmed that it will retain ownership of the retailer after an extensive bidding process for the business blaming a shift in the global financial markets for the u-turn.
The decision marks the conclusion of a review that began in January this year and valued the Boots business at £5 billion.
Wallgreens Boots Alliance (WBA) will also keep ownership of the No 7 make up and beauty range.
WBA said it had “been encouraged by productive discussions” held with “a range of parties”, and had received significant interest from prospective buyers, but that since launching the sale process the global financial markets had suffered an unexpected and dramatic change.
Bidders that are understood to have missed out on acquiring the UK’s largest pharmacy included Britain’s billionaire Issa brothers owners of supermarket Asda that had teamed up with investment company TDR Capital and Indian billionaire Mukesh Ambani’s Reliance Industries that had partnered with Apollo Global Management to make a run at the retail chain.
“As a result of market instability severely impacting financing availability, no third party has been able to make an offer that adequately reflects the high potential value of Boots and No7 Beauty Company,” WBA said.
“Consequently, WBA has decided that it is in the best interests of shareholders to keep focusing on the further growth and profitability of the two businesses.”
Rosalind Brewer, CEO of WBA, said: “We have now completed a thorough review of Boots and No7 Beauty Company, with the outcome reflecting rapidly evolving and challenging financial market conditions beyond our control. It is an exciting time for these businesses, which are uniquely positioned to continue to capture future opportunities presented by the growing healthcare and beauty markets.
“The board and I remain confident that Boots and No7 Beauty Company hold strong fundamental value, and longer term, we will stay open to all opportunities to maximise shareholder value for these businesses and across our company.”
