US pharmacy giant Walgreens has dropped plans to sell Boots, saying buyers were unable to raise enough funds due to instability in financial markets.
But none of the offers adequately reflected the high potential value of the UK pharmacy chain, it said.Potential buyers reportedly included Indian billionaire Mukesh Ambani and US buyout firm Apollo Global Management, who made an offer valuing the business at about £5bn.Walgreens said it had moved away from plans to offload Boots after an "unexpected and dramatic change" in the financial markets.
"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. Retail analyst Catherine Shuttleworth said that Walgreens had wanted more for Boots than suitors had been prepared to pay for it.She said raising the necessary funds to buy it would have been difficult in the current market, and that Boots has a "significant" pensions liability.