Chemist Warehouse owner Sigma Healthcare has told investors that it is backing out of a proposed $14 billion acquisition of the UK’s largest pharmacy chain, Boots.
Just five days after informing the ASX that it had entered discussions to acquire the 1800-store retailer, Sigma has changed its mind on a bid, saying it does not meet its current strategic objectives.
“International growth is one of Sigma’s four key strategic growth pillars, and the company remains committed to driving growth in its core offshore markets, while assessing and seeding new markets,” the company said in a statement.
Sigma, however, is continuing with its plans to take Chemist Warehouse to the UK, an expansion that comes off the back of a memorandum of understanding signed with Greenlight Healthcare.
“Sigma engaged in the Boots sale process, given the potentially unique opportunity it presented to accelerate its UK expansion through the market-leading Boots brand and large footprint,” it added. “However, following its preliminary review, the company has concluded that such an acquisition would not currently meet its strategic and capital investment objectives.”
Inside FMCG has approached Sigma Healthcare for more information.
The pharmaceutical giant maintained that it has “many opportunities for growth”, reiterating confidence in its current, Australia-focused strategy.
“The company will continue to assess opportunities, including potential acquisitions, in all markets that will deliver on our strategy and long-term sustainable returns for Sigma shareholders,” the statement ended.
