Boots takeover in crisis as pharma giant pulls out of £7bn deal | UK | News
The £7 billion takeover bid of Boots has been canceled by the pharmaceutical giant that made the bid. Australian pharmaceutical wholesaler and retailer Sigma Healthcare said on Monday that buying Boots “will not meet its strategic and capital investment objectives”.
Sigma had been in early stage talks over a possible deal for the high street pharmacy giant, which operates around 1,800 stores in the UK. Share profits rose 6% after they confirmed they would not seek a deal to take over the high street chain. A statement from Sigma reads: “Sigma has many opportunities for growth and is confident in its established growth strategy, focusing primarily on the Australian market.”
Marc Jocum, senior product and investment strategist at Global X ETFs, said: Guard that investors were not persuaded into the Boots takeover deal.
“Investors seem to have breathed a sigh of relief,” he said. The increase in the stock award “suggests that shareholders would rather see management focus on executing on the opportunities currently in front of them rather than pursuing another transformational deal of this scale,” Jocum continued.
Sigma authorized a stake in the Greenlight Healthcare brand in the UK last month. The 177-year-old UK chain Boots was offered for sale in 2022 by Walgreens Boots Alliance.
The Canadian branch of the billionaire Weston family, which owns grocery chain Loblaws and pharmacy business Shoppers Drug Mart, has also been linked to a possible deal with Boots. A sale to the Westons would mark the family’s return to UK retail after selling Selfridges for £4bn in 2022.
Founded in Nottingham in 1849 by John Boot, Boots employs around 51,000 people, including around 6,000 at its headquarters in Beeston.
The retailer last week reported revenue rising 3.2% to £7.5bn by the end of August 2025, while pre-tax profits rose 25% to £337m.
