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Walgreens Boots Alliance (WBA), the owner of Boots, has reportedly shelved plans for a £7bn sale of the UK health and beauty retailer for the second time.
According to The Telegraph, Walgreens abandoned the plans after cutting its profit outlook and announcing to close 700 of its US stores.
Despite this, third quarter sales for the retailer were 6% higher than a year ago, with growth across all categories, and increased total retail market share.
Chief executive Tim Wentworth told The Telegraph: “While we believe there is significant interest in Boots at the right time, its growth, strategic strength and cash flow remain key contributors to the company. We are committed to continuing to invest in Boots UK and find innovative ways for this business to fulfil its potential.”
In 2022, WBA pulled plans to sell Boots after the global financial markets suffered “unexpected and dramatic change”.
At the time, the group said that as a result of market instability “severely impacting financing availability’, no third party was able to make an offer that “adequately reflects the high potential value of Boots and No7 Beauty Company”.
Since then, however, interest in selling the retailer has been revived, and last December it was reported that WBA was eyeing an initial public offering (IPO) on the London Stock Exchange for Boots after revisiting plans to offload the pharmacy chain.
It is understood that any sale of Boots would be subject to approval from ministers and regulators, as the company still plays a big role in delivering public healthcare services across Britain.
Boots has been contacted for comment.
