Retailer Walgreen Buys 45% Stake In Alliance Boots
cash and shares offer Walgreen cement its position as the world's largest
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.
company wholesale business supplying pharmacies and doctors in 21 countries.
Illinois based company operates 7890
pharmacies in the United
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.
pays $ 4 billion in cash and exchange more than 83 million shares for its stake
in the privately owned Alliance Boots.
a sweetener for shareholders, raising its dividend from 22.5 cents Walgreen to
deal must still be approved by industry regulators.
announcement coincided with the release of Walgreen earnings for the three
months to end of May.
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.
shares fell 6% in early trading in New
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.
have a deal to make Boots more visible, international, create new markets for
boat and at Nottingham," said Alliance
Boots' executive chairman Stefano Pessina.
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.
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.