Boots could return to London market as US owner begins talks with private equity group Sycamore Partners

Speculation about the future of the Boots owner has revived hopes he could return to the London stock exchange.

US giant Walgreens Boots Alliance, owner of the pharmacy chain, is in talks to sell itself to private equity group Sycamore Partners.

New York-listed Walgreens is valued at around £5bn.

Sycamore is believed to be interested in offloading Boots, which would put a London listing in play.

This would be a major boost for the City amid concerns about the health of the UK market.

And analysts believe Boots is more attractive to buyers and investors now than when it was for sale two years ago.

Sycamore and Walgreens have been discussing a deal that could be completed early next year, according to the Wall Street Journal.

Pharmaceutical tycoon Stefano Pessina, chairman of Walgreens, who owns a 17 per cent stake, could end up owning Boots, Sky News reported.

Another option would be for Boots to be demerged and listed on the London Stock Exchange.

Independent retail analyst Nick Bubb said: “The question is: could Boots go public now? And I was skeptical about that a year ago as the business recovery didn’t look sustainable, but Boots continued to outperform in 2024.

‘Investors should want to back a big bet on that market and the wider retail sector could do with another big company listed in it. So yeah, I think Boots might end up appearing on the list again.

In 2022, Walgreens abandoned the sale of Boots after blaming an “unexpected and dramatic change” in market conditions.

Jonathan De Mello, founder and chief executive of JDM Retail, said: “The fact that Boots got rid of the pension scheme and posted consistently good results in the past

few trading quarters, will probably lead to a much more successful listing than a couple of years ago.’

If Boots, which began as a family herbal medicine shop in Nottingham in 1849, returns it would be a much-needed vote of confidence as companies shift their listings from London to New York or become takeover targets due to their declines. ratings. Walgreens bought the pharmacy in 2014.