MARKET REPORT: Boots owner Walgreens soars on takeover talk
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Shares in the US-based owner of pharmacy chain Boots have soared on talks of a takeover by private equity. New York-listed Walgreens Boots Alliance, which owns the High Street chain as well as US group Walgreens, surged 22 per cent following a report that it was in talks to sell itself to buyout group Sycamore Partners.
The two firms have been discussing a takeover deal which could be completed early next year, according to the Wall Street Journal. A sale is expected to result in parts of the business being sold off by Sycamore, sparking speculation about the future of Boots. Boots and Walgreens merged in 2014.
Back in the Square Mile, the mood was cautious. The FTSE 100 index closed down 0.9 per cent, or 71,72 points, at 8280.36 and the FTSE 250 index lost 0.4 per cent, or 75.33 points, to 20973.94. Sid should have been happy. However, investors in Centrica were cautious even as it announced a £300million extension to its existing share buyback programme, and said it expects annual earnings to be in line.
Shares surge: New York-listed Walgreens Boots Alliance, which owns Boots as well as US group Walgreens, surged 22% following a report it is in talks to sell itself to Sycamore Partners. Although the British Gas owner’s 2024 adjusted earnings per share are likely to broadly match the analyst consensus forecast of 18.5p, it would still represent a 45 per cent decline from its 2023 outcome.
