Shares of Walgreens Boots Alliance (WBA.US) surged by over 20% following reports of advanced buyout discussions with private equity firm Sycamore Partners, sparking high volatility. The potential deal, which could finalize early next year, comes as Walgreens grapples with steep challenges in its pharmacy and retail operations, including plans to close 1,200 stores over three years. Once valued at over $100 billion, Walgreens' market capitalization has dwindled to $8 billion, with shares plummeting 89% from its peak in 2015.
The buyout marks a bold move for Sycamore, known for smaller retail deals, and could involve divesting parts of Walgreens or partnering to manage the acquisition. Walgreens' decade-long decline contrasts with its historic role as a major U.S. pharmacy chain with over 12,000 stores globally. Its competitor, CVS Health (CVS.US), has navigated similar pressures by diversifying into insurance and pharmacy-benefit management, a path Walgreens has yet to follow. If completed, the deal could significantly reshape the landscape of the retail pharmacy sector.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
Source: xStation 5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
