(Walgreens) Walgreens Boots Alliance Inc. has decided against selling its Boots drugstore chain in the UK due to “unexpected and dramatic change” in the global financial markets.
Walgreens says that market instability has severely impacted financing availability. The company says that, as a result, no third party has been able to table a convincing offer that matches the value of Boots.
The company said that the recent strong performance of Boots and its key No7 beauty brand influenced the decision to retain the interest amid the existing offers.
Walgreens CEO Rosalind Brewer says Boots and No7 Beauty Company carries strong fundamental value. He says the company will be open to opportunities to enhance shareholder value for its businesses in the long term.
The decision now keeps off several companies, including a consortium between Reliance Industries and Apollo Global Management which were eyeing more than $6.1 billion or 5 billion pounds acquisition.
The deal comes amid waning dealmaking in the UK due to fragile credit markets. Banks are cutting their exposure to leveraged loans after a busy 2021. More than $25 billion of transactions have been affected across Europe.
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