The Australian pharmacy group that had eyed a takeover of Boots has pulled out of talks, arguing that the potential $10 billion (€8.6 billion) deal did not match its objectives.
Sigma Healthcare, which owns both the Chemist Warehouse chain and a wholesale pharmaceutical operation in Australia, confirmed an FT report that it was in talks with private equity firm Sycamore Partners, the owner of Boots, last week.
Canada’s Weston family has also held talks over a deal for the UK chemist chain.
Sigma said on Monday that it would not pursue what it described as a “potentially unique opportunity” to acquire Boots, adding that “the company has concluded that such an acquisition would not currently meet its strategic and capital investment objectives”.
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Shares in Sigma jumped 8 per cent on Monday, having materially weakened last week following the reports of a Boots deal, as some investors balked at the prospect of a large international takeover.
Boots, which traces its roots to a single chemist shop in 1849, has endured a period of uncertainty surrounding its ownership since it was put up for sale in 2022 but bids failed to meet expectations. Sycamore acquired its parent company Walgreens Boots Alliance for $23.7bn last year and the UK business has been linked with a stock market listing.
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Sigma, which completed a near-$6bn merger with the larger chain Chemist Warehouse last year, was considered to be an obvious buyer for Boots after it expanded into the UK last month through a joint venture with GreenLight Healthcare, a small chain centred on London.
It plans to rebrand some of the stores in the style of the Australian retail business – known for its cheap prices and crowded shelves – in the coming months.
Adrian Lemme, an analyst with Citi, said that Sigma had gained “at least two valuable pieces of information from the exercise” after exploring a deal for Boots.
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He said that the company had learned how its investors would react to a large-scale deal of an incumbent player and gained more insight into the UK market ahead of its own expansion via the GreenLight joint venture.
Sigma said it would focus on the Australian market but continue to assess acquisition opportunities.
Separately on Monday, British billionaire Mike Ashley’s Frasers Group made a nil-premium offer for its Australian partner Accent Group after accusing it of mismanagement and poor performance.
Frasers, which already owns a near-23 per cent stake in the owner of the Platypus and Athlete’s Foot shoe chains, has offered to buy out the company for almost 400 million Australian dollars (€241 million), or A$0.65 a share.
Investment bank Barrenjoey is advising Frasers, which also made a €2.7 billion offer for German fashion retailer Hugo Boss last week.
Shares in Accent rose 13 per cent to A$0.74 after saying it would review the offer. – Copyright The Financial Times Limited 2026
