US pharmacy giant Walgreens is seeking to buy UK high street chemist Alliance Boots for £9 billion.
Walgreens bought a 455 stake in the company in 2012 and the Walgreens board is now waiting for shareholder approval and regulatory to acquire the remaining 55%.
In contrast to the recent proposed takeover of US giant Pfizer’s attempts to buy UK firm AstraZeneca for tax purposes, Walgreens is not planning to alter its tax structure and the new merged company, called Walgreens Boots Alliance, will remain based in Chicago, US.
Boots will keep its headquarters in Nottingham, UK.
Walgreens president and chief executive Greg Wasson, who will become president and chief executive of the combined company, said:
“We are excited to move forward with the next important step in becoming a new kind of global health care leader. Expanding globally with Alliance Boots will make quality health care more affordable and accessible to communities here in America and around the world.”
Alliance Boots executive chairman Stefano Pessina, who will become vice chairman of the combined company, commented:
“The expected creation of the new enterprise will represent the most significant milestone in the history of Alliance Boots and, importantly, a very positive step for the health care industry as a whole. Together with Walgreens, we have already made good progress over the past two years and I strongly believe that the merger will bring significant growth opportunities for both mature and emerging markets.
Today’s announcement reflects the great track record and accomplishments of our people to date and I am convinced that their skills, expertise and commitment will continue to make a positive contribution in the years to come. This combination is a true partnership, further evidenced by the composition of the future management team of Walgreens Boots Alliance.”
