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Health and Healthcare

Walgreens Gets To Complete $7 Billion Dollar Alliance Boots Investment

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By Jon C. Ogg Updated Published
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Walgreen Co. (NYSE: WAG) has announced that it has completed its investment in Alliance Boots, an international pharmacy-led health and beauty group.  The deal has received all regulatory approvals despite the size of the deal.

Today’s announcement said, “The Walgreens investment consists of approximately $4.0 billion in cash and 83.4 million shares of Walgreens common stock in exchange for a 45% equity stake in Alliance Boots. Walgreens has the option to proceed to a full combination in approximately three years’ time by acquiring the remaining 55% of Alliance Boots.”

With a $35.80 share price today, the shares included come to a value of just under $3 billion. That in turn puts the value today of about $7 billion.

Today’s news comes shortly after Walgreen and Express Scripts Holding Company (NASDAQ: ESRX) settled their prescription fight. While this is not quite market-moving news for Walgreen, the deal does show that regulatory agencies will continue to allow large deals even by the most dominant of players in the retail drug sales space as long as they are not evident to be highly monopolistic on the surface.

JON C. OGG

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About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

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