It is understood that Boots UK CEO Sebastian James, alongside advisers at Goldman Sachs, allegedly held meetings with potential bidders last week, which include the new owners of Asda, according to The Times.

Sources close to the newspaper claimed that the Issa brothers – Asda’s owners – are interested and could make a bid.

Despite speculation, it is unlikely that Sainsbury’s will lodge a bid, senior sources told the publication, as it is unwilling to risk another deal, following the competition watchdog’s investigation of its proposed merger with Asda in 2018 – which it blocked in 2019.

Other parties reportedly interested in the deal include major private equity firms Bain Capital and CVC Capital Partners, according to The Times’ sources. It was reported last month that the two firms had teamed up to submit a joint bid for Boots UK.

C+D has approached Boots UK for comment.

The health and beauty giant has not explicitly confirmed that it plans to sell off its UK pharmacies, although rumours that it was “exploring” such a move began to surface at the end of last year.

However, it reiterated to C+D last month that it will be conducting a “strategic review” of its pharmacy and No 7 Beauty businesses, which it said was currently in an “exploratory stage”.

How much could a sale generate?

The Times has previously reported that Boots UK’s owner, Walgreen Boots Alliance, was hoping to fetch around £7 billion by putting the chain up for auction.

However, according to other estimates, the sale could generate £10 billion.

Meanwhile, in an email sent to Boots UK employees last month, CEO Sebastian James wrote that it is “realistic to think” that Boots UK could become “an independent company again”. However, “there will be a period when the exact way forward is not known”, he added.

Boots UK currently holds 2,150 pharmacy contracts and employs 51,000 people across the UK, according to a document released by the multiple last month.

What do you make of this news? Share your thoughts on the C+D Community