Apollo Global Management & Reliance make USD 6.24 Bn bid for Boots

Apollo Global Management & Reliance make USD 6.24 Bn bid for Boots

U.S. private equity firm Apollo Global Management has reportedly teamed up with Mukesh Ambani’s Reliance Industries to make a USD 6.24 billion bid for Boots UK Limited.

The deal will enable US group Walgreens to keep a minority stake in the Nottingham-based pharmacist and retailer.

The ongoing interest from Walgreens comes following concerns about Boots’ USD 8.74 billion pension fund which is one of the UK’s largest private schemes. Walgreens pledged guarantees worth billions of dollars for this pension fund. It is understood that the trustees want significant additional funds from potential bidders.

Reliance, one of the biggest physical store retailers in India, has been developing an online portfolio to supplement its position as the leader in the telecoms business under the Jio brand.

Concerning investments in the UK, the group purchased toy retailer Hamleys in 2019 for USD 87.44 million (£70 million). In 2021, it spent around USD 71.2 million (£57 million) on the 300-acre Stoke Park estate which consists of a 27-hole championship golf course.

Apollo has showcased an interest in the UK retail market for a long time. It was keen to invest in the Morrisons supermarket chain and multinational retailer Marks & Spencer.

The equity fund also supports the Alteri fund, which purchased online fashion retailer Missguided before it called in administrators a month ago. Apollo also owns the French retail group Casino supermarket and Albertsons in the United States.

Interestingly, CVC Capital and Bain Capital, two of the biggest private equity funds in the world, had deliberated offering a rival bid for Boots but have stepped back as they were not interested in paying beyond USD 4.99 billion (£4 billion).

It is worth mentioning that Walgreens initially wanted close to USD 12.49 billion (£10 billion) for Boots when it started considering a sale last year.

Source credit:

About the author

Anjali Mishra

Anjali Mishra

A postgraduate in Criminal Law, Anjali Mishra uses her analytical skills to understand and write about all things market. Anjali holds a keen interest in writing insightful articles on healthcare, business, finance, and emerging technologies for AlpenHornNews and numerous other portals. Coming from outside the economical milieu, Anjali aims to write in a way that helps readers with non-technical knowledge understand technical concepts with ease.