A proposed £7 billion takeover of Boots has been thrown into crisis after a pharmaceutical giant pulled out of the deal. Sigma Healthcare, the Australian wholesaler and retailer, announced on Monday that acquiring the high street pharmacy chain would not meet its strategic and capital investment objectives.
Sigma Healthcare Withdraws Bid
Sigma Healthcare had been in early-stage talks to acquire Boots, which operates around 1,800 stores across the UK. However, the company confirmed it would not pursue the deal, causing its share price to rise by 6%. In a statement, Sigma said: "Sigma has many opportunities for growth and is confident in its established growth strategy, with a primary focus on the Australian market."
Investor Reaction
Marc Jocum, a senior product and investment strategist at Global X ETFs, told The Guardian that investors were not convinced by the takeover. He said: "Investors appear to have breathed a sigh of relief." Jocum added that the stock price increase "suggests shareholders would rather see management focus on executing the opportunities already in front of them than pursue another transformational deal of that scale."
Boots' History and Recent Performance
Boots, the 177-year-old UK chain, was put up for sale in 2022 by Walgreens Boots Alliance. The Canadian branch of the billionaire Weston family, which owns grocery chain Loblaws and pharmacy business Shoppers Drug Mart, has also been linked with a possible deal. A sale to the Westons would mark the family's return to UK retail after selling Selfridges for £4 billion in 2022.
Founded in Nottingham in 1849 by John Boot, the retailer employs around 51,000 people, including about 6,000 at its headquarters in Beeston. Boots reported last week that revenue rose 3.2% to £7.5 billion in the year to the end of August 2025, while pre-tax profit climbed 25% to £337 million.
Sigma had authorized a stake in UK brand Greenlight Healthcare last month. The withdrawal of the bid leaves Boots' future uncertain, with potential interest from other parties still possible.
