SIGMA HEALTHCARE EXITS BOOTS TAKEOVER TALKS

Sigma Healthcare has withdrawn from negotiations to acquire Boots, the high street pharmacy chain. The Australian pharmacy giant announced on Monday that a takeover would not align with its strategic and capital investment objectives. Sycamore Partners, which acquired Walgreens Boots Alliance's parent company last year, had been seeking buyers for Boots at a valuation of £7.5 billion. The withdrawal leaves the billionaire Weston family as a remaining potential buyer in discussions with Sycamore Partners.

Sigma Healthcare is listed on the Australian stock exchange and had been pursuing international expansion opportunities. The company confirmed it had engaged in sales talks, recognising Boots as a market-leading brand with significant UK retail presence that could have accelerated its expansion plans. Shares in Sigma rose 6 per cent following the announcement, with investors interpreting the decision positively given concerns about risks associated with large international acquisitions. Preliminary discussions between Sycamore Partners and potential buyers, including the Weston family, have been ongoing since Easter.

The withdrawal has rekindled market expectations for Boots to return to the London stock exchange through a public listing. A Boots flotation would represent the pharmacy's first stock market listing in 19 years, marking a significant return to the UK capital markets. Such a listing would provide a confidence boost to London's equity market following a challenging period for initial public offerings.