Sigma Healthcare has abandoned its pursuit of Boots, ending talks over a potential takeover that could have valued the UK pharmacy chain at around $10bn (£7bn).
The Australian pharmaceutical wholesaler and retailer said on Monday that acquiring Boots would ‘not meet its strategic and capital investment objectives’.
It comes days after the Financial Times reported that Sigma had held early-stage talks over a potential deal for the high street pharmacy giant, which operates around 1,800 stores across the UK.
Sigma shares rose six per cent following the update, with investors appearing to welcome the decision to step away from a major international acquisition.
Global X ETFs senior product and investment strategist Marc Jocum said the share price jump suggested investors would rather see Sigma focus on the growth opportunities already in front of it, rather than pursue another large-scale transformational deal.
Sigma said it had “many opportunities for growth” and remained confident in its existing strategy, with its main focus on the Australian market. However, it added that overseas expansion would remain one of its long-term growth pillars.
A Boots deal would have marked a major push into the UK for Sigma, which acquired a controlling stake in pharmacy chain Greenlight Healthcare last month.
The business also completed its merger with Chemist Warehouse last year, creating a pharmacy and retail group worth around A$30bn (£17.8bn). The deal was valued at A$8.8bn when first announced in December 2023, before Sigma’s share price more than tripled.
Sigma’s withdrawal adds fresh uncertainty around Boots’ future after years of speculation over the ownership of the 177-year-old retailer.
Boots was first put up for sale in 2022 by owner Walgreens Boots Alliance, although a deal was later shelved. Reports have since continued to link the business with either a trade sale or a potential return to the London stock market.
The Canadian branch of the billionaire Weston family, which owns grocery chain Loblaws and pharmacy business Shoppers Drug Mart, has also been linked with a possible deal for Boots.
A sale to the Westons would mark the family’s return to UK retail after selling Selfridges for £4bn in 2022.
Speculation over a potential stock market listing had intensified after reports that outgoing Currys boss Alex Baldock had been lined up as Boots’ next chief executive.
Boots, which was founded in Nottingham in 1849 by John Boot, employs around 51,000 people, including about 6,000 at its headquarters in Beeston.
The retailer reported last week that revenue rose 3.2 per cent to £7.5bn in the year to the end of August 2025, while pre-tax profit climbed 25 per cent to £337m.
Boots said demand for weight-loss jabs and beauty products had helped drive the profit uplift.
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