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Mukesh Ambani-owned Reliance Industries’ bid to acquire UK-based chemist and drugstore chain Boots has derailed with American retail major Walgreens Boots Alliance deciding to exit sale talks. Walgreens which has been looking for a buyer for Boots said it did not receive any bids that reflected the potential value of the drugstore chain.
On June 9, BusinessLine had reported that Apollo Global Management and Reliance Industries made a binding bid to acquire Boots for about £5-6 billion. Walgreens had put up the business for sale in December last and sought a valuation of about £7 billion for Boots.
In shareholders’ best interest
In a statement issued on Tuesday, Walgreens said, “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 further growth and profitability of the two businesses.”
“Walgreens has been encouraged by productive discussions held with a range of parties, receiving significant interest from prospective buyers. However, since launching the process, global financial markets have suffered unexpected and dramatic change,” Walgreens added.
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