MARKET REPORT: Boots owner Walgreens soars on takeover talks

Shares in the US-based owner of the Boots pharmacy chain have soared on talk of a private equity takeover.

New York-listed Walgreens Boots Alliance, which owns the High Street chain and US group Walgreens, rose 22 percent following a report that it was in talks to sell itself to buyout group Sycamore Partners.

The two companies have been discussing an acquisition deal that could be completed early next year, according to the Wall Street Journal.

A sale is expected to result in Sycamore selling parts of the business, sparking speculation about the future of Boots. Boots and Walgreens merged in 2014.

Back on Square Mile, the mood was cautious. The FTSE 100 index closed down 0.9 per cent, or 71.72 points, at 8,280.36 and the FTSE 250 index lost 0.4 per cent, or 75.33 points, to 20,973.94.

Sid should have been happy. However, investors in Centrica were cautious even as it announced a £300m extension to its current share buyback programme, and said it expects annual profits to be in line.

Although the British Gas owner’s adjusted earnings per share in 2024 are likely to be broadly in line with the analyst consensus forecast of 18.5p, it would still represent a 45 per cent decline from its 2023 result.

The company noted the usual uncertainties for the rest of the year, including weather, raw material prices and asset performance. Centrica shares fell 0.3 per cent, or 0.4p, to 131p.

After rising in the previous session on China stimulus hopes, mining groups returned some of that largesse as trade data from the top metals consumer showed a drop in exports and imports.

FTSE 100-listed Antofagasta fell 3.5 per cent, or 63 pence, to 1,752.5 pence, Glencore lost 2.3 per cent, or 8.95 pence, to 385.9 pence, and Anglo American lost 1 percent, or 26 pence, to 2,505 pence.

Elsewhere, Asia-focused financial group Prudential also retreated, falling 1.4 per cent, or 9.8 pence, to 671.6 pence following a report that the blue-chip firm is considering options for its asset manager Eastspring Investments including selling a minority stake to help expand the business.

But on the bright side among blue-chip stocks, British Land rose 1.6 per cent, or 5.8 pence, to 372.2 pence after analysts at Goldman Sachs upgraded its rating to “buy” from ” neutral,” citing stronger growth prospects.

Student accommodation group Unite was also boosted by an improving corridor, adding 0.5 per cent, or 4p, to 839p, as analysts at investment bank JP Morgan Chase raised their stance to “overweight.” “.

On the second line, First Group rose the most, gaining 6.5 per cent, or 10 pence, to 164.1 pence, when it announced its entry into the London bus market after agreeing to buy the company French state RATP Dev Transit London, an operator with a 12 percent market share, for £90 million.

But cybersecurity group NCC was at the bottom of the FTSE 250, falling 15.3 per cent, or 24.8p, ​​to 137.6p, as it warned that lengthening sales cycles would mean modest revenue growth. in the current financial year.