Australia's Sigma Healthcare drops pursuit of UK pharmacy chain Boots, shares jump
Sigma Healthcare Withdraws from Boots Acquisition Talks
June 15 (Reuters) - Australia's Sigma Healthcare has withdrawn from preliminary talks to buy British pharmacy chain Boots, saying the deal would not meet its strategic and capital investment objectives, sending its shares soaring more than 8% on Monday.
Background and Strategic Objectives
A deal would have expanded Sigma's footprint in the UK market following its acquisition of a controlling stake in Greenlight Healthcare in May.
Insights from the Acquisition Process
Citi analysts said Sigma had likely gained two valuable insights from the process: how the market would react to an acquisition of a "large incumbent player" in a new market and further details on the UK market and its "biggest player", Boots.
Market Reaction
Shares of Sigma jumped as much as 8.3% and were on track for their best day since late August 2025 if current gains held. The broader benchmark stock index rose 1.5% by 0032 GMT.
Company Statements and Future Strategy
Rationale Behind Withdrawal
Sigma said it had considered the opportunity as a way to accelerate its expansion in the United Kingdom through Boots' established brand and extensive footprint.
Response to Media Reports
Responding to media reports, the Australian pharmaceutical wholesaler and retailer had said earlier this month that it was evaluating a possible acquisition of Boots.
Commitment to International Growth
The company said on Monday international growth remains a key strategic pillar and reiterated its commitment to expanding in core offshore markets while exploring opportunities in new regions.
(Reporting by Roshan Thomas in Bengaluru; Editing by Jacqueline Wong and Subhranshu Sahu)
