Reliance-led consortium to buy Boots retail chain from WBA

Reliance-led consortium to buy Boots retail chain from WBA

01 June 2022, Mumbai:

A consortium of India's Reliance Industries and private equity firm Apollo have filed a bid to buy the Boots chain from Walgreens Boots Alliance (WBA) after the other major bidder declared intentions to walk away from the deal.

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*As per a Fashion Network report, the controller of the Asda UK supermarket chain, Issa Brothers plan to exit from the deal as it is not ready to pay the £7 billion asking price. Rising interest rates and Russia’s invasion of Ukraine have made buyers nervous about raising debt to acquire businesses of this type.

The Issa brothers and TDR Capital, who own Asda together, viewed the Boots purchase as a way to improve Asda’s pharmacy services.

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However, this could lead to multiple Boots store closures with branches being integrated into Asda superstores. WBA is reportedly seeking between £6 billion and £7 billion for Boots but the Issas are only prepared to pay £5 billion. WBA reportedly aims to retain a stake in Boots.

The Reliance consortium could have the advantage of its Indian strength with plans to expand the chain into the country. That would appeal to the WBA given that it’s hanging on to a stake in the business.

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CREDITS: *A Fashion Network report.

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