Boots set to snub stock market return as it eyes £7.5bn sale: Australian firm confirms takeover talks with High Street giant in blow to City
Hopes that Boots could return to the London stock market look likely to be dashed as its owner holds talks with suitors over a £7.5billion sale.Sycamore Partners, which last year bought Boots’ US parent Walgreens Boots Alliance, is in discussions with potential buyers including the billionaire Weston family. On Wednesday, Australian pharmacists Sigma Healthcare confirmed it had also held 'preliminary discussions' with Boots, but there is 'no certainty' any transaction will take place. A deal would see the High Street health and beauty chain abandon plans for a stock market listing through a so-called initial public offering (IPO) in a major blow to the City.A source close to the discussions told the Mail: ‘It’s very preliminary but talks are ongoing. You shouldn’t expect a deal on Monday morning.‘But a relatively quick trade sale this year is seen as preferable to an IPO next year given all the uncertainty that brings.’The talks, first reported by the Financial Times, started before Easter and could see the business sold for £7.5billion. For sale: Boots' owner Sycamore Partners is in discussions with potential buyers including the family behind Primark as well as Australian pharmacists Sigma Healthcare The Westons are best-known in the UK for the Associated British Foods empire, which contains fashion chain Primark, but also owns department store Fortnum & Mason.The talks with Boots involve the Canadian branch of the Westons, which owns pharmacy chain Shoppers Drug Mart through the family’s Wittington Investments firm.Fellow suitor Sigma Healthcare is listed on the Australian stock exchange and has been seeking international expansion. Buyout group Sycamore Partners broke up Boots’ former owner Walgreens Boots Alliance in August last year after its £7.4billion takeover of the US group, creating the Boots Group in the process.This includes the chemist’s UK and Irish chains, Boots Opticians and the No7 Beauty Company. Walgreens Boots Alliance boss, Italian billionaire Stefano Pessina, and his wife, Ornella Barra, continue to own a 44 per cent stake in Boots.Earlier this year, Pessina, who originally brought together Boots and US chemists Walgreens in 2012, said Sycamore ‘will, of course, have to sell [Boots] sooner or later’.There was optimism that Boots, which employs 51,000 staff in Britain, could return to the London stock market.News that Currys boss Alex Baldock was set to take the reins at the group that started as a family herbal medicine shop in Nottingham in 1849 had bolstered hopes it would float.Boots’ return to the stock market after a 19-year absence would be a much-needed vote of confidence for the City.Industry experts have said that Boots has become more alluring to potential buyers and investors as it cashes in on strong beauty sales.The talks emerged as Boots reported a 3.2 per cent rise in annual sales to £7.5billion, boosted by strong demand for its beauty products and weight-loss jabs.It has added 61 cosmetics and fragrance brands since last year, as well as opening two ‘beauty-only’ stores in London and Bristol. Strong demand for weight-loss jabs also helped lift sales. Profits in the UK rose by a quarter to £337million over the year to the end of August 2025 despite a £44million hit from IT upgrades, as well as an undisclosed increase in employer costs.DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
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Boots set to snub stock market return as it eyes £7.5bn sale: Australian firm confirms takeover talks with High Street giant in blow to City
