Walgreens Boots Alliance [WBA] has decided not to sell the company despite a takeover bid worth a reported £5 billion being launched earlier this year. The decision comes after one of India’s richest men joined forces with a US private equity firm for the Beeston-based employer.
Roughly 8,500 people work for Boots in Nottingham and its headquarters is based in Thane Road, Beeston. The company remains one of the county's largest private employers and the largest company based in Nottinghamshire.
In April, billionaire Mukesh Ambani’s firm Reliance Industries started working with Apollo Global Management on a potential move. However, Walgreens announced on Tuesday, June 28, that it would not be selling Boots, despite all the recent speculation. Rumours also circulated that the owners of Asda, the Issa brothers, withdrew their bid to buy the company over a dispute over the price.
Boots stops questions about takeover bid as chancellor visits - read more here.
WBA says it has been encouraged by discussions held with a range of parties and received significant interest from prospective buyers. However, since launching the process, the company state the global financial markets have suffered "unexpected and dramatic change".
As a result of market instability severely impacting financing availability, WBA says 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 the further growth and profitability of the two businesses.
Chief Executive Officer, Rosalind Brewer, said: “We have now completed a thorough review of Boots and No7 Beauty Company, with the outcome reflecting rapidly evolving and challenging financial market conditions beyond our control.
"It is an exciting time for these businesses, which are uniquely positioned to continue to capture future opportunities presented by the growing healthcare and beauty markets. The Board and I remain confident that Boots and No7 Beauty Company hold strong fundamental value, and longer term, we will stay open to all opportunities to maximize shareholder value for these businesses and across our company.”
A spokesperson for WBA added that the decision to retain the businesses has also been supported by the ongoing strong performance and growth of Boots and No7 Beauty Company, which have "exceeded expectations despite challenging conditions".
Back in July 2020, it was revealed that 4,000 jobs would be cut at the company - with twenty percent of the workforce at the company's Nottingham head office axed. The restructuring also resulted in the closure of 48 Boots Opticians stores and was blamed on the impact of the Covid-19 pandemic.
Broxtowe's Conservative MP, Darren Henry, previously told Nottinghamshire Live: "My absolute priority is that of the jobs and pensions of Boots employees. Boots was established in Nottinghamshire in 1849 and many of my constituents have worked and been a part of its history since."
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