Walgreens contacts potential buyers for £7 billion Boots drugstore chain

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According to reports, Walgreens Boots Alliance Inc., with headquarters in Deerfield, Illinois, has started talks with possible purchasers for its Boots pharmacy business in the United Kingdom, which is worth around £7 billion ($8.8 billion). According to those acquainted with the situation, the business has started early discussions with potential stakeholders alongside consultants. Nevertheless, no official sale procedure has been started since the conversations are still in their early stages. Walmart has chosen to remain silent on the subject in order to protect customer privacy.

Investor enthusiasm and interest in the possible sale of Walgreens was evident in the dramatic increase in its stock price following reports of the company’s outreach to possible purchasers. In New York, shares increased by 7.2% to $18.43 after the Bloomberg News report.

This news follows earlier rumors that said Walgreens was thinking at selling its UK franchise again, over 18 months after it scrapped that deal. Earlier this year, Bloomberg reported that Boots might be worth about £7 billion, and that an IPO in London was one possible way to achieve this price.

Walgreens is going through a tough patch right now, with its share value down 42% in the last year, and the decision to look into selling Boots comes at the same time. Challenges in reviving growth have prompted strategy shifts, such as a dividend cut in half and revised profit projections that are lower than expected. These changes were brought about by a decrease in discretionary spending, which mirrored the wider economic difficulties.

If the deal goes through, Walgreens would be through a major change, undoing a transatlantic merger that was carried out in stages more than ten years ago. In light of changing market conditions and the need to maximize shareholder value, the company is attempting to realign its strategies, which may include a divestiture.

Ethan Sullivan

Ethan's penchant for the pulse of the fashion world extends to covering lifestyle topics, offering readers a seamless blend of the latest style updates and lifestyle trends.

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