Market Turmoil Causes Walgreens To Scrap £5 Billion Boots Sale
Walgreens Boots Alliance (WBA) has confirmed it will retain ownership of British health and beauty retailer Boots after an extensive bidding process for the business.
WBA’s move marks the conclusion of a review that commenced in January and saw the British retailer valued at £5 billion.
WBA said that the sale of Boots attracted significant interest, though global markets have suffered substantially since it launched the sale. Bidders including billionaire businessmen Mohsin Issa and Zuber Issa are understood to have missed out on acquiring Boots, which is the largest pharmacy in the UK.
“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.
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.”