Reliance joins hands with Apollo to acquire UK-based retailer Boots
THE NEWS
Mukesh Ambani's Reliance Industries and Apollo Global Management have come together to make a big bid to acquire Walgreens Boots Alliance Inc’s international drugstore arm. Both companies together have offered to buy Boots for a price range of £5-6 billion (Rs 48,470 - 58,166 crore) which is close to the valuation that Walgreens sought in December 2021 ie. (Rs 67,850 crore). The companies have come together to beat foreign rivals Britain’s billionaire Issa brothers and TDR Capital who are also competing to acquire Boots.
WHAT IS 'BOOTS'?
Congratulations @marc_donovan Chief Pharmacist @BootsUK, who has been awarded an OBE for his services to pharmacy as part of the Queen’s Birthday Honours. We are incredibly proud of his vital work every day to support our local communities ?✨
— Boots UK News (@BootsUKNews) June 2, 2022
More here: https://t.co/QBTMGB4pEr pic.twitter.com/aoyKXR4Zxp
Boots is UK’s leading pharmacy-led health and beauty retailer. It is owned by American retailer Walgreens Boots Alliance, which is in the healthcare, pharmacy, and retail business. The chain store of Boots is present in the United Kingdom, Ireland, Italy, Norway, the Netherlands, Thailand, and Indonesia. Walgreens has been wanting to sell this business since December 2021 and sought a valuation of about Rs 67,850 crore for Boots.
The bid process has continued for many months now thanks to geopolitical issues, rising Covid-19 cases, inflation and the volatile stock markets in the UK.
HOW DOES ACQUIRING BOOTS BENEFIT RELIANCE??
Boots has a huge retail network business of more than 2,200 stores across the UK, has its own products and also owns popular private brands like No7 Beauty Co in multiple countries.
As we have all witnessed, Reliance is looking to pivot from its traditional oil-to-chemicals businesses to new industries like fashion, grocery, digital services, and pharma. It has already ventured into retail, telecom, and digital services and has been acquiring companies left, right, and centre.
In the last few years, Reliance has acquired leading digital marketplaces, pharmacy stores like Netmeds, furniture and home decor retailer Urban Ladder, and the lingerie and intimate wear brand, Zivame, along with more than a dozen Indian fashion designer brands.
It is using Jiomart to consolidate its online and offline footprint and strengthen its B2-B and B2C presence. With Boots, Reliance seems to be making a strategic move to achieve a better global presence in the e-commerce and retail industry.
Also, Reliance has also been working with Facebook and Google for digital inclusion in India and with Microsoft, to enhance the adoption of leading technologies.