A proposed £7billion takeover of Boots has been scrapped by the pharmaceutical giant which put the bid in. Sigma Healthcare, the Australian pharmaceutical wholesaler and retailer, said on Monday that acquiring Boots would “not meet its strategic and capital investment objectives.”
Sigma had held early-stage talks over a potential deal for the high street pharmacy giant, which operates around 1,800 stores across the UK. Its share profits rose by 6% after it confirmed they would not be seeking a deal to take over the high street chain. A statement from Sigma read: “Sigma has many opportunities for growth and is confident in its established growth strategy, with a primary focus on the Australian market.”
Marc Jocum, a senior product and investment strategist at Global X ETFs, told The Guardian that investors had not been convinced by a takeover deal of Boots.
He said: “Investors appear to have breathed a sigh of relief.” Jocum went on to say the stock prise increase “suggests shareholders would rather see management focus on executing the opportunities already in front of them than pursue another transformational deal of that scale.”
Sigma had authorised a stake in UK brand Greenlight Healthcare last month. Boots, the 177-year-old UK chain, was put up for sale in 2022 by Walgreens Boots Alliance.
The Canadian branch of the billionaire Weston family, which owns grocery chain Loblaws and pharmacy business Shoppers Drug Mart, has also been linked with a possible deal for Boots. A sale to the Westons would mark the family’s return to UK retail after selling Selfridges for £4bn in 2022.
Boots, which was founded in Nottingham in 1849 by John Boot, employs around 51,000 people, including about 6,000 at its headquarters in Beeston.
The retailer reported last week that revenue rose 3.2% to £7.5bn in the year to the end of August 2025, while pre-tax profit climbed 25% to £337m.