Sigma Healthcare in talks to acquire Boots for £7.5bn

The Australian pharmaceutical giant Sigma Healthcare, the parent company of the Chemist Warehouse group, confirmed on Wednesday that it is engaged in preliminary talks to acquire the British health and beauty retailer Boots. The potential deal, reported to be worth around £7.5 billion ($10 billion), could see Boots abandon its planned return to the London stock market.

Sigma Healthcare stated to the Australian Securities Exchange that it continuously reviews opportunities to create shareholder value and has engaged in preliminary discussions regarding the sale process. It emphasized that no transaction has been finalized and there is no certainty a deal will proceed. The announcement led to a sharp decline in Sigma's share price, which fell more than 7 percent.

The discussions involve Boots' current owner, the private equity firm Sycamore Partners, which acquired the chain last year through its purchase of Walgreens Boots Alliance. According to reports, Sycamore began talks with potential strategic buyers before the Easter holiday. The other main party in the talks is the Canadian branch of the billionaire Weston family, which controls the grocery chain Loblaws and pharmacy...