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03/10/2005
Boots announces £7 billion merger
Health and beauty retailer Boots has announced that it is to merge with rival company Alliance UniChem, in a deal worth £7 billion.
The merger of the two companies, which will be called Alliance Boots, will create one of the largest healthcare retailers in Europe, with 2,600 stores in the UK and sales of £13 billion.
If shareholders and UK competition authorities successfully approve the merger, it is expected to save at least £100 million.
However, Boots has confirmed that 1,000 jobs will be lost as a result of the deal. However, Chairman Sir Nigel Rudd said that the firm did not see this as a “significant number”, considering the 100,000 staff of the combined companies.
Retail union Usdaw said that it would be seeking “urgent talks” with Boots and Alliance UniChem following the announcement.
John Hannett, Usdaw General Secretary, said: “We have long standing agreements with both companies which is good news for our members as we will be able to use those positive relationships to protect the interests of our members.
“We are seeking meetings with both companies this week to find out exactly what the long term implications are for our members as company briefings to staff have made it clear that any significant changes will not happen overnight.”
Boots currently has 1,400 stores in the UK, while Alliance UniChem has 1,200 pharmacies, most of which are in Britain, although it also has a presence in Norway, Italy and the Netherlands.
Boots Chief Executive Richard Baker and Chairman Sir Nigel Rudd are both expected to retain their roles in the new company, if the merger is successful.
Boots shareholders will hold 50.2% of the shares in the combined company.
Established in 1849, Boots has been struggling in recent years against competition from supermarkets, which have been selling medicines and toiletries at cheaper prices. Tesco and Asda have both opened medicine counters, following the relaxation of rules governing where chemists can open in the UK.
Sir Nigel Rudd and Boots Chief Executive Richard Baker are both expected to retain their roles in the new company, if the merger is successful.
(KMcA/SP)
The merger of the two companies, which will be called Alliance Boots, will create one of the largest healthcare retailers in Europe, with 2,600 stores in the UK and sales of £13 billion.
If shareholders and UK competition authorities successfully approve the merger, it is expected to save at least £100 million.
However, Boots has confirmed that 1,000 jobs will be lost as a result of the deal. However, Chairman Sir Nigel Rudd said that the firm did not see this as a “significant number”, considering the 100,000 staff of the combined companies.
Retail union Usdaw said that it would be seeking “urgent talks” with Boots and Alliance UniChem following the announcement.
John Hannett, Usdaw General Secretary, said: “We have long standing agreements with both companies which is good news for our members as we will be able to use those positive relationships to protect the interests of our members.
“We are seeking meetings with both companies this week to find out exactly what the long term implications are for our members as company briefings to staff have made it clear that any significant changes will not happen overnight.”
Boots currently has 1,400 stores in the UK, while Alliance UniChem has 1,200 pharmacies, most of which are in Britain, although it also has a presence in Norway, Italy and the Netherlands.
Boots Chief Executive Richard Baker and Chairman Sir Nigel Rudd are both expected to retain their roles in the new company, if the merger is successful.
Boots shareholders will hold 50.2% of the shares in the combined company.
Established in 1849, Boots has been struggling in recent years against competition from supermarkets, which have been selling medicines and toiletries at cheaper prices. Tesco and Asda have both opened medicine counters, following the relaxation of rules governing where chemists can open in the UK.
Sir Nigel Rudd and Boots Chief Executive Richard Baker are both expected to retain their roles in the new company, if the merger is successful.
(KMcA/SP)
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