Boots owner Walgreens abandons sale plan amid ‘dramatic’ market turmoil

The US owner of Boots is pulling the plug on plans to sell Britain’s biggest high street pharmacy chain amid “unexpected and dramatic” volatility in markets.

Walgreens Boots Alliance (WBA) said it will now keep Boots and the No7 beauty brand under its existing ownership despite lining up bidders including Indian billionaire Mukesh Ambani, that valued the business at about £5bn.

The 2014 Walgreens merger deal for Boots valued the firm at about £9bn at the time.“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, chief executive 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.”

The owner said its decision to retain was also supported by strong performances by the brands, which it said “exceeded expectations despite challenging conditions”.

In the second quarter of its financial year, WBA said it was boosted by rebounding sales at Boots as high street footfall recovered following pandemic restrictions. The group is set to reveal its performance for the latest, three-month period on Thursday.

WBA has more than 315,000 employees in nine countries through its brands including Boots, Duane Reade and Benavides in Mexico.

Among other potential suitors for Boots was reportedly “private equity retail specialist” Sycamore Partners.