India's Reliance Industries explores Boots bid

India's Reliance Industries is reportedly exploring a bid for the UK business of chemist retail chain Boots, joining other bidders including Asda's Issa brothers, Apollo Global Management and Sycamore Capital.

Sources close to the matter said that Reliance was in the early stages of exploring the feasibility of an offer for Boots, and that it was not clear if the bid would actually materialise.

Reliance is owned by Billionaire Mukesh Ambani, one of India's richest men. He is reportedly looking to acquire Boots to tap into India’s consumer goods market.

Boots will be sold as part of an auction process led by the bank Goldman Sachs although the sales price is not clear. While the chain was first valued at around £7 billion, the price has since deflated after it was revealed that a joint bid by CVC and Bain Capital only valued the retailer at £4 billion.

Apollo reportedly began talks with banks in late March to provide debt funding for a £6 billion takeover of Boots, while Sycamore Capital's equal £6 billion takeover bid had previously been put into question as it was revealed that it had made two takeover offers for fashion brand Ted Baker - both of which have been rejected. Ted Baker put itself up for sale last week following a third unsolicited takeover move.

Walgreens also recently announced that it was willing to retain a stake of up to 30% in Boots amid concerns over the rising costs of borrowing, which would be required to complete the takeover of Boots.

The chemist retail chain has reported that in its second quarter ending 28 February 2022, UK sales were up 15.2%, with retail sales increasing by 22%. Its digital sales had also seen a 60% boost, with online sales accounting for 15% of its retail sales.