The owner of Australian pharmacy group Chemist Warehouse is in talks with UK pharmacy chain Boots over a possible deal to buy the business for more than $14 billion.
On Wednesday, Sigma Healthcare, which last year combined with rival Chemist Warehouse Group, confirmed media speculation over the possible purchase of The Boots Group.
“Sigma continuously reviews opportunities that would create value for shareholders and has engaged in preliminary discussions in relation to the sale process,” it said in a statement to the ASX, but noted there was no certainty that any transaction would eventuate.
Shares in Sigma Healthcare was 3.9 per cent lower in early trade on Wednesday.
The Financial Times first reported that the owner of Boots was talking to parties, including the billionaire Weston family and Sigma, about a $US10 billion ($14.2 billion) sale of the UK health and beauty retail business.
Private equity firm Sycamore Partners, which took control of Boots through the acquisition of parent company Walgreens Boots Alliance last year, began discussions with potential strategic buyers before Easter, the FT said, without naming its sources. If the sale of Boots takes place, it would mean Sycamore may abandon plans for an initial public offering of Boots in London.
Representatives for Boots and Sycamore declined to comment.
Sigma’s acquisition of Chemist Warehouse last year turned the combined business into a $32 billion ASX giant, and the firm has already begun expanding in the United Kingdom. In May, it bought a 75 per cent stake in British group Greenlight Healthcare.
The Canadian branch of the Weston family owns the grocery chain Loblaws and pharmacy chain Shoppers Drug Mart through its Wittington Investments vehicle.
Last month, Boots appointed Alex Baldock, outgoing boss of electronics retailer Currys Plc, as its new CEO.
Former Boots CEO Ornella Barra stepped down earlier this year after leading the British drugstore chain for almost a decade. Barra became chair of the board of directors, replacing her partner, Stefano Pessina, who is also a major shareholder in Boots and stayed as a director.
Any sale of Boots would be among the largest for a UK retailer since 2021, when US private equity firm Clayton, Dubilier & Rice bought supermarket chain Morrisons for £7 billion ($13.3 billion) and the billionaire Issa brothers and buyout firm TDR Capital bought rival grocer Asda for £6.8 billion.
Boots’ latest accounts show that total comparable retail sales rose almost 6 per cent in the UK last year, driven by growth in beauty. The company launched more than 50 new beauty brands during the year to August 2025.
In pharmacy, sales rose 5 per cent, with vaccinations and weight-loss treatments being the most popular paid-for services among customers.
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Millie Muroi is the economics writer at The Sydney Morning Herald and The Age. She was formerly an economics correspondent based in Canberra’s Press Gallery and the banking writer based in Sydney.Connect via X or email.From our partners
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