The owner of Boots the Chemist has abandoned the sale of Britain’s biggest high street pharmacy chain amid torrid conditions in global debt-financing markets.
Walgreens Boots Alliance confirmed on Tuesday afternoon a Sky News report that it had decided to retain ownership of Boots after an auction process lasting for several months.
In a statement, the New York-listed healthcare giant said it had conducted a thorough strategic review but would now keep control of the “successful” Nottingham-based company.
“WBA has been encouraged by productive discussions held with a range of parties, receiving significant interest from prospective buyers.
“However, since launching the process, the global financial markets have suffered unexpected and dramatic change.
“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.
“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.”
The decision will cast doubt over the long-term strategy of a stalwart of the UK high street, which had been identified as non-core to its American parent’s future.
On Tuesday, WBA insisted it was committed to investing in Boots’ future, although it signalled that it was open-minded about reviving a sale or other form of corporate activity in future.
The £5.5bn auction of Boots had faltered badly in recent weeks, with the only bidder to make a binding offer- a consortium of Apollo Global Management and Reliance Industries – pinning its hopes on the steadfastness of a quartet of lenders.
Apollo and Indian behemoth Reliance had lined up Royal Bank of Canada, Credit Suisse, Santander and Bank of America to…
Source : skynews
