Retailer Walgreen Buys 45% Stake In Alliance Boots

The cash and shares offer Walgreen cement its position as the world's largest pharmacy chain.

 Alliance Boots operates a chain of pharmacies in the UK and more than 3,300 health and beauty retail stores in 11 countries around the world.

 The company wholesale business supplying pharmacies and doctors in 21 countries.

 Profit rise

 The Illinois based company operates 7890 pharmacies in the United States.

 Nottingham-based Boots is smaller than their U.S. competitors, but is Europe's largest provider of health and wellness products. It also has strong Internet sales.

 Walgreen pays $ 4 billion in cash and exchange more than 83 million shares for its stake in the privately owned Alliance Boots.

 As a sweetener for shareholders, raising its dividend from 22.5 cents Walgreen to 27.5 cents.

 The deal must still be approved by industry regulators.

 The announcement coincided with the release of Walgreen earnings for the three months to end of May.

 The net profit was $ 537, down 11% on the $ 603m the company during the same period last year. However, she said the investment in Alliance Boots, her performance in the first year would increase, should the deal go through.

 Walgreen shares fell 6% in early trading in New York.

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 The deal will bring Boots' No7 cosmetics and big brands such as botany and hair care products in nearly 8,000 Walgreen stores and Duane Reade.

 "I have a deal to make Boots more visible, international, create new markets for boat and at Nottingham," said Alliance Boots' executive chairman Stefano Pessina.

 Walgreen CEO Gregory Wasson said he and his wife were personally impressed walgreen ads with the No7 range.Article resource by : tinnitus treatment

 "The UK is the center for the development and manufacture of new products for a great market like the U.S. market will become. New York is the window of the world," he said.

 The two companies have very little overlap. This will be no job losses expected from the deal. In fact, says the BBC's business editor Robert Peston, the deal could create a world manufacturing center in Nottingham, possibly increasing the number of jobs.