Prescription remedy

2 October 2005

The UK chemist s planned £6.5bn tieup with Alliance Unichem will help it diversify and protect its turf from the likes of Tesco. That may not be a panacea to Boots’ problems. But the deal looks fair and goes a long way to addressing them.

This content is for Subscribers only

Context News

Boots, the UK chemist and general retailer, was expected to announce an agreed merger with domestic rival Alliance Unichem on October 3, according to weekend press reports.

The deal will see ownership of the combined group divided equally between both companies' shareholders. However, it will not complete until Boots has sold its healthcare division and returned approximately two thirds of the proceeds of the sale, or £1bn, to its shareholders.

Sir Nigel Rudd, Boots' chairman, and Richard Baker, its chief executive, will keep their roles at the enlarged company.

At last week's closing prices, Boots was worth £4.3bn while Alliance Unichem was valued at £3.1bn.

Email a friend

Please complete the form below.

Required fields *