Australia-based Sigma Healthcare has withdrawn from discussions over a possible acquisition of UK pharmacy chain Boots, saying a deal valued at $10bn would not align with its strategy.
The company, which owns Chemist Warehouse and runs a pharmaceutical wholesale business, confirmed to the Financial Times that it had recently been in talks with Boots owner Sycamore Partners.
In a statement, Sigma said it would not proceed with what it called a “potentially unique opportunity” to buy the UK-based company.
It added that “the company has concluded that such an acquisition would not currently meet its strategic and capital investment objectives”.
Boots has been the subject of repeated ownership speculation in recent years. It was put up for sale in 2022, but the process was dropped after offers did not reach the expected level.
Walgreens had drawn interest at the time from Apollo and TDR Capital.
Sycamore took control of Boots when it acquired Walgreens Boots Alliance for $23.7bn last year.
It later reorganised the wider group into five separate operating divisions.
The UK retailer has also been linked to a possible stock market flotation.
The Weston family has separately held talks about acquiring Boots through Wittington Investments, the holding company behind Canadian supermarket group Loblaw and pharmacy business Shoppers Drug Mart.
Shoppers Drug Mart was acquired for C$12.4bn ($8.90bn) in 2013 and now operates more than 1,300 outlets in Canada.
Sigma had been viewed as a natural bidder for Boots following its expansion into the UK market last month via a joint venture with GreenLight Healthcare, which operates 22 pharmacies in London and nearby areas.
The Sydney-listed group said at the time that it intended to convert some of those stores to the Chemist Warehouse format in the coming months.
The company, which completed its near-$6bn merger with Chemist Warehouse last year, said it would continue to concentrate on Australia while still reviewing other acquisition opportunities.
Boots posted revenue growth of 3.2% to £7.5bn ($10.07bn) for the year to August 2025, supported by new beauty brand additions and increased demand for weight-loss jabs.
Pre-tax profit rose 25% to £337m, partly due to the reversal of impairment charges.
