US Pharmacy Chain Walgreens Considers Selling and Spinning Off UK 'Boots' Acquired 7 Years Ago

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Walgreens, the giant in the US pharmaceutical distribution industry, is reportedly considering selling or spinning off Boots, the largest pharmacy chain in the UK, which it acquired seven years ago.

On the 6th (local time), according to a report by AP News citing UK media Sky News, Walgreens recently sought advice from investment bank Goldman Sachs on options to sell Boots or separate it into an independent corporation.

Walgreens acquired Boots twice, in 2012 and 2014, for a total of $22 billion (approximately 26 trillion KRW).

Additionally, it aggressively expanded by acquiring New York pharmacy chain Duane Reade and purchasing 2,000 stores of Rite Aid, the third-largest in the industry.

However, as competition intensified with e-commerce companies including retail giant Amazon entering the pharmaceutical sales business, Walgreens began streamlining operations starting in 2018.

Walgreens is reported to have sold most of its European pharmaceutical distribution business for $6.5 billion earlier this year.

Walgreens currently operates about 9,000 stores across the US, while Boots has 2,200 stores in the UK and employs approximately 55,000 people.

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