Walgreens stock slides as group drops plans to sell UK-based boots

Updated 8:24 a.m. EST

Walgreens Boot Alliance (WBA) – Get the Walgreens Boots Alliance Inc. Shares fell on Tuesday after the pharmacy and healthcare group scrapped plans to sell its UK business.

Britain’s Sky News first reported that Walgreens, which had planned to auction off the division, known as Boots the Chemist, in a process that could have valued Britain’s biggest pharmacy chain at more than 10 billion dollars, would likely exit the sale before its third quarter. back later this week.

Walgreens said it had a number of “productive discussions” regarding the sale, but noted that “due to market instability which is severely affecting the availability of financing, no third parties have been able to make a offer that adequately reflects the high potential value “of neither Boots nor No7 Beauty.

Boots, 173, whose 2,200 stores are a mainstay of Britain’s high streets, was taken over by Walgreens in 2014 for around £9billion but was actually put up for sale earlier this year when the group unveiled plans for a strategic review of its UK business.

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“We have now completed a thorough review of Boots and No7 Beauty Company, the outcome of which reflects the rapidly changing and challenging financial market conditions beyond our control,” said CEO Rosalind Brewer. “This is an exciting time for these companies, which are uniquely positioned to continue to seize future opportunities presented by the growing health and beauty markets.”

“The Board and I remain convinced that Boots and No7 Beauty Company hold strong fundamental value, and longer term we will remain open to all opportunities to maximize shareholder value for these companies and our business.” , she added.

Shares of Walgreens Boots Alliance, a component of Dow, fell 2.8% in premarket trading on Tuesday to mark an opening price of $41.00 each, which would extend the stock’s decline since the start of the year at around 21.4%.

Walgreens will report third-quarter results on Thursday, with analysts looking for net income of 92 cents per share on revenue of $32.06 billion.

Strong U.S. drugstore sales helped it beat Street’s first-quarter forecast, with revenue up 3.8% to $33.8 billion, same-store sales in the U.S. States having increased by 9.5%.

Prescription fills rose 3.9% from a year ago to 300 million, while pharmacy sales fell 3.3%. The group also added that it supplied 12 million Covid vaccines in the quarter, compared to 13.5 million in the previous period.

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