Boots takeover plans thrown into doubt after bid rejected

The £7 billion bid by the Weston family to buy Boots is now at risk of collapsing, raising fresh uncertainty over the future of the pharmacy giant.

Talks between the Westons—one of the world’s richest retail families—and Boots’ private equity owners reached a standstill after the family lowered its offer, which was subsequently rejected.

The Westons revised their bid following Sigma Healthcare’s withdrawal from a rival bid in June, leaving them as the sole suitor for Boots.

Across the UK, Boots operates approximately 1,800 stores. (Image: Getty Images)

Boots takeover talks at risk of collapse

“It isn’t totally dead,” a source close to the matter told The Telegraph.

“It’s a stand-off.

“They tried to knock down the price after realising they were the only show in town.

“They came in with a lower number that was deemed unacceptable.

“The gap isn’t completely insurmountable.

“However, the owners won’t sell at any price.”

A source suggested that economic uncertainty had made the Westons more cautious.

The Westons’ business empire is split between the UK and Canada, with the Canadian side—which owns a controlling stake in Loblaw, Canada’s largest supermarket chain—leading the talks.

Boots’ ownership has been uncertain since Walgreens Boots Alliance was acquired by US private equity firm Sycamore Partners for £18 billion last year.

Following the deal, Boots was separated into a standalone business, prompting expectations of a sale or a return to public markets.

Italian billionaire Stefano Pessina and his family reinvested in the company during the carve-out.

Mr Pessina had previously teamed up with buyout giant Kohlberg Kravis Roberts to take Boots private in 2007 in what was the largest-ever private equity-led takeover of a UK-listed business at the time.

Before negotiations with the Westons and Sigma Healthcare, Sycamore Partners had considered relisting Boots on the London Stock Exchange after nearly two decades off the market.

It is believed that if sale talks break down, Sycamore will revive plans to float Boots next year.

Walgreens previously explored a sale in 2022, attracting interest from private equity firms including TDR Capital, which owns Asda.

However, those talks collapsed after bids failed to meet expectations.

Since then, Boots has closed hundreds of underperforming UK stores as part of a wider cost-cutting programme.

Investment has been redirected towards its core estate of 400 larger stores, primarily located in town centres and retail parks.

This core network is supported by smaller pharmacies and travel-focused locations.

Across the UK, Boots operates approximately 1,800 stores.

The company also owns beauty brands including No7 and Soap & Glory, and has become an increasingly important provider of NHS services, offering doctor consultations, vaccinations, blood-pressure checks, and specialised treatments for skin and hair loss.

In preparation for a potential public listing, Boots recently appointed Alex Baldock, former chief executive of Currys, as its new CEO, who is set to join the company this autumn.

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The British arm of the Weston family controls Associated British Foods—parent company of Primark—and Fortnum & Mason through its Wittington Investments vehicle.

The family previously owned Selfridges for nearly 20 years before selling the department store for £4bn in 2022 to a consortium including Central Group of Thailand and Austrian property giant Signa Holding.

Both Sycamore Partners and Boots have declined to comment.

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