The boots will remain the property of Walgreens Boots The alliance after the American pharmacy company refused to sell the largest British chemist.
Walgreens has been looking to sell Boots and its associated No. 7 Beauty brand since late last year, and an official review of its options begins in January. However, on Tuesday he stopped the sale, blaming it on the global financial market, which meant that potential buyers are struggling to borrow enough money.
The value of many of the world’s largest companies has fallen during 2022 as investors fear the prospect of raising interest rates against the background of rising inflation. Rising interest rates also increase the cost of borrowing, making it harder to take on loans that are financed by loans.
Reliance Industries Indian billionaire Mukesh Ambani and US private investor Apollo Global Management made a joint bet of £ 5 billion on the Boots. The interest of Asda owners, brothers Mohsin and Zuber Issa, never led to a formal bid, while American firms CVC and Bain Capital also abandoned the discussed approach. It was reported that Walgreens looking for as much as £ 10 billion when he originally put Boots up for sale, as he sought to focus on his business in the US.
In a statement, Walgreens said it had aroused “significant interest from potential buyers”, but that “unexpected and drastic changes” had taken place in world markets.
“As a result of market instability, which has seriously affected the availability of funding, no third party has been able to make an offer that adequately reflects the high potential value of Boots and No. 7 Beauty Company.”
Walgreens insisted that the discontinued sale did not adversely affect the performance of Boots or No. 7, stating that they were performing well and continued to grow. He said he would invest in companies that “exceeded expectations despite difficult conditions”.
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However, Rosalind Brewer, CEO of Walgreens, signaled that the company would consider any future approaches to the takeover. He “will remain open to all possibilities to maximize shareholder value”.
She added that the company had abandoned the sale because of “rapidly evolving and challenging financial market conditions that are beyond our control”.
“This is an exciting time for these businesses, which have unique positions, to continue to take advantage of the future opportunities offered by the growing healthcare and beauty markets,” she said.
