SYDNEY — Sigma Healthcare said Monday it had withdrawn from the sale process for UK pharmacy chain Boots, ending weeks of speculation about a potential tie-up between the two retailers.
The ASX-listed Australian company, which operates the Chemist Warehouse chain, said it had terminated talks with Boots owner Sycamore Partners after initial discussions.
“Sigma engaged in the Boots sale process given the potentially unique opportunity it presented to accelerate its U.K. expansion through the market-leading Boots brand and large footprint,” Sigma said in a market filing.
The company said the deal ultimately did not align with its strategic or capital-investment objectives. Sigma said it remained committed to driving growth in what it called its core offshore markets.
Sigma, valued at about US$21.5 billion, took a separate step last month to enter the UK market. The company signed a memorandum of understanding with Greenlight Healthcare to launch the Chemist Warehouse brand in the UK, a move that does not require the kind of capital commitment a Boots acquisition would have demanded.
Private-equity firm Sycamore Partners took control of Boots last year through its acquisition of parent company Walgreens Boots Alliance. According to the Financial Times, citing people familiar with the matter, Sycamore has held talks with Sigma and the billionaire Weston family on a possible US$10 billion sale of the drugstore chain. Sigma’s withdrawal leaves the Weston family among potential suitors still in the process.
Sigma’s stock fell 1.86% on the ASX following the announcement.