The supermarket chain has discussed “at senior level” a potential acquisition of the health and beauty giant, according to a report in the Mail on Sunday this weekend (January 15).
However, it is not yet clear whether Asda’s bosses have decided to proceed with this, the Mail on Sunday reported.
Asda declined to comment when approached by C+D.
Boots UK reiterated to C+D today (January 17) that it will be conducting a “strategic review” of its pharmacy and No 7 Beauty businesses, which it said was currently in an “exploratory stage”.
“Further announcements will be made in due course, after the right decision has been reached for Boots’ future and for all stakeholders,” it said.
Formal auction soon?
Boots UK – which includes more than 2,200 pharmacies – could formally be put up for auction “in the coming weeks” after information about the company has been shared with the interested parties, according to the Mail on Sunday.
Other supermarkets have shown interest in the pharmacy chain, according to “grocery industry sources” named in the report.
Boots’ owner Walgreens Boots Alliance might also decide to “spin off” the multiple into a separately listed company, as was reported last year.
It comes as Boots UK CEO Sebastian James wrote to Boots employees last week that it is “realistic to think” that the multiple could become “an independent company again”, due to its strong market position.
Sky News reported last week (January 11) that US private equity firms Bain Capital and UK-based CVC Capital were pursuing a multi-billion-pound takeover of Boots UK.
Meanwhile, according to estimates published by The Guardian, the sale could generate £10 billion if it were to go ahead.
Asda is owned by brothers Mohsin and Zuber Issa, who also own takeaway chain Leon and petrol forecourt business the EG Group.
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