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Future of British Business

Walgreens Abandons Boots Sale as Debt-Market Chaos Spooks Buyers

  • Company cites financing obstacles to getting desired value
  • Walgreens has been focused on changes in US pharmacy chain
A selection of Boots products in a shopping basket.

A selection of Boots products in a shopping basket.

Photographer: Darren Staples/Bloomberg
Updated on

Walgreens Boots Alliance Inc. abandoned the sale of its Boots drugstore chain that was expected to bring more than $6 billion after failing to secure the desired valuation for the UK business amid a turbulent credit market.

The American health-care group had been in talks with a consortium between Reliance Industries Ltd. and Apollo Global Management Inc. over the sale of Britain’s biggest pharmacy chain. The two parties couldn’t reach an agreement on value, which prompted Walgreens to pull the sale, people familiar with the matter said. Reliance had committed financing for the deal, Bloomberg News reported earlier in June.