Future of high street giant plunged into uncertainty as US owner begins takeover talks
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THE future of Boots has been plunged into uncertainty while a buyout fund negotiates with its US owner. Pharmacy giant Walgreens Boots Alliance, which bought Boots in 2014, is understood to be in takeover talks with private equity firm Sycamore Partners.
![[Pharmacy giant Walgreens Boots Alliance, which bought Boots in 2014, is understood to be in takeover talks]](https://www.thesun.co.uk/wp-content/uploads/2024/12/crop-32255443.jpg?strip=all&w=960)
News of the talks leaked on Tuesday night, causing Walgreens’ shares to rocket. Walgreens Boots Alliance’s market value has collapsed in recent years, falling from a peak of $100billion (£78billion) in 2015 to $7.5billion (£5.8billion) earlier this week.
![[Executive chairman Stefano Pessina at the National Portrait Gallery’s unveiling of a portrait of Florence Boot]](https://www.thesun.co.uk/wp-content/uploads/2024/12/68e8263a-80e2-41ab-93db-a1d0755f64d8.jpg?strip=all&w=413)
Sources said there would be no immediate impact on Boots’ business. But it is likely that any buyer will try to run Boots as a separate British firm. Executive chairman Stefano Pessina, who engineered the creation of Walgreens Boots Alliance after a lucrative deal-making career, still owns a 17 per cent stake, worth around £1billion, and will be kingmaker in any deal.
![[Chelsea legend John Terry took part in ICAP’s charity day]](https://www.thesun.co.uk/wp-content/uploads/2024/12/100-one-day-s-revenue-956530569.jpg?strip=all&w=960)
Bosses have previously tried to boost the US firm’s valuation with spin-off plans for Boots without success. Two sale processes have been launched and scrapped in the last two years. In 2022 a £5billion auction for the British high street chain included interest from Asda owners the Issa brothers.
![[He joined TV’s Rachel Riley for the event where traders donate commissions to good causes]](https://www.thesun.co.uk/wp-content/uploads/2024/12/wintercross-icap-pa-wire-note-956576786.jpg?strip=all&w=960)
But talks faltered after bidders balked at the price Walgreens was asking for a business that required a lot of investment. A few years ago Boots seemed to be the problem child of the US group. But the tables have turned and the UK chain is now the strongest part of the business, generating significant cash.
![[Actors Ray Winstone and Joely Richardson were also at the London HQ]](https://www.thesun.co.uk/wp-content/uploads/2024/12/wintercross-icap-pa-wire-note-956570233.jpg?strip=all&w=960)
