US pharmacy giant Walgreens has acquired 45 per cent of equity interest in Alliance Boots at $6.7bn in cash and stock, with the option to proceed to a full combination.
A joint statement said the aim of the strategic transaction was to bring together the strengths and expertise of both to create the first global pharmacy-led health and wellbeing enterprise, with over 11,000 stores in 12 countries. The move would create the largest global pharmaceutical wholesale and distribution network and the world's largest purchaser of prescription drugs and well-being products.
Walgreens will have the option to acquire the remaining 55 per cent of Alliance Boots in three years' time, for $9.5bn in cash and stock at the current Walgreens share price and exchange rate.
Walgreens president and CEO Gregory Wasson said: 'We are looking forward to working with Alliance Boots to leverage our combined strengths and provide an even broader range of innovative, cost-effective products and services to patients and customers across the healthcare landscape.'
The statement added; 'Given the complementary geographic footprints of Walgreens and Alliance Boots, there are no plans for job reductions at either company as a result of the transaction.'
Alliance Boots, which has 625 optical practices including 185 franchises, said it was committed to its support offices across Europe, including the UK, as well as keeping the Boots Nottingham HQ.