US giant buys into Alliance Boots

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.