Takeover discussions between the Weston family and Boots owner Sycamore Partners have stalled after the family amended its offer for the UK pharmacy and retail chain, placing a proposed £7bn ($9.40bn) transaction in doubt.
The Telegraph reported that the revised approach was turned down following months of talks, leaving the possible acquisition uncertain.
A source close to the discussions told the publication that the chances of reviving the deal were “50/50”.
Boots and Sycamore both declined to comment on Retail Insight Network’s request for comment.
The Westons revised their offer after Australia’s Sigma Healthcare dropped its competing bid in June, leaving the Anglo-Canadian family as the sole remaining bidder.
“It is not totally dead. It is a stand-off. They tried to knock down the price after realising they were the only show in town. They came in with a lower number that was deemed unacceptable. The gap is not completely insurmountable. However, the owners will not sell at any price”, the source was quoted as saying.
According to the report, the Weston family had become more cautious as the economic backdrop worsened since talks began around Easter, citing renewed inflation concerns, the risk of higher interest rates and weaker business confidence.
Boots’ ownership has faced renewed attention since its parent company, Walgreens Boots Alliance, was bought by Sycamore Partners for $23.7bn last year.
Boots was later separated into a standalone business, leading to expectations that it could either be sold or listed.
It is understood that Sycamore will restart plans for an initial public offering next year if the sale process does not produce an agreement.
Before opening discussions with the Westons and Sigma Healthcare, Sycamore had been weighing a London Stock Exchange flotation for Boots.
Walgreens had also examined a sale in 2022, drawing interest from private equity bidders, including TDR Capital, but those talks ended after bids came in below expectations.
Boots has shut hundreds of under-performing UK stores as part of a cost-cutting programme while focusing investment on 400 larger outlets.
The chain has 1,800 shops overall and also owns various beauty brands such as No7 and Soap & Glory.
