CVC and Bain Capital drop out of Boots bid, Asda still in the running

The consortium of Bain Capital and CVC Capital Partners have reportedly decided not to submit an offer for chemist retail chain Boots.

It is reported that the consortium dropped out largely due to price expectations of the chain's owner, Walgreens Boots Alliance (WBA). It was first revealed in January that CVC and Bain Capital were pursuing the deal.

This leaves the owners of supermarket chain Asda, brothers Mohsin and Zuber Issa, to pursue a £6 billion deal, with a takeover meaning that the brothers would add Boots' 2,200 UK retail outlets and pharmacies to Asda's existing store portfolio.

A few other bidders including Apollo Global Management and Sycamore Capital are also reported to be still in the running. Indicative offers worth more than £6 billion would have been submitted last week, with the sale being facilitated by Goldman Sachs.

Boots UK comparable retail sales increased 16.3% in 2021, compared to the same period the previous year. It operates 2,200 stores including pharmacies and large health and beauty stores, and employs over 50,000 people.

Walgreens Boots Alliance was formed in 2014 after Walgreens bought the 55% stake in UK and Switzerland-based Alliance Boots that it did not already own.