Australian pharmacy group Chemist Warehouse has entered talks to buy UK health and beauty chain Boots for a reported $14bn.
On Wednesday, parent company Sigma Healthcare – which only last year itself merged with Chemist Warehouse – confirmed “preliminary chats” had occurred to buy Boots.
The pharmaceutical wholesaler and retailer said it would continue to review opportunities that could help increase shareholder value, including a transaction for the UK retailer.
“Sigma continuously reviews opportunities that would create value for shareholders and has engaged in preliminary discussions in relation to the sale process,” it said in a statement to the ASX.
Chemist Warehouse confirmed it was only in “preliminary chats” and the deal had not been finalised.
Shares in Sigma Healthcare were hammered, down more than 7 per cent to $2.72 following the announcement.
According to reports in the Financial Times, Boots owner Sycamore Partners has been approached by several different retailers to take control of the business.
Sigma is understood to be among the interested parties, along with Canada’s supermarket chain Loblaws and pharmacy retailer Shoppers Drug Mart.
The sale is expected to fetch about $US10bn ($A14.3bn). By market share, Boots is the biggest chain in the UK, with about 1800 high street stores. It has been in operation for more than 177 years. More than 50,000 people work for Boots.
Sigma Healthcare made waves in the Australian pharmaceutical industry when it merged with Chemist Warehouse to become a local giant. The merger, which cost $34bn in 2025, combined the Chemist Warehouse, Amcal and Discount Drug Stores under one brand, giving Sigma control of nearly 1000 stores.
Should the deal for Boots occur, it would be the second major UK buy from Sigma Healthcare in a matter of months. In May, Sigma bought a 75 per cent stake in British group Greenlight Healthcare, which operates 22 pharmacies, in a deal that will take the Chemist Warehouse brand into Britain.
Sigma Healthcare also has stores in New Zealand, Ireland and Dubai.
