Adbrands Weekly Update 7th Aug 2014:
US pharmacy giant Walgreen has confirmed plans to take full control of its UK counterpart Alliance Boots earlier than expected. It will acquire the 55% of Boots it doesn't already own in February next year, at a cost of around £5bn in cash and shares. One unexpected turn is that it will
not proceed with a corporate inversion to shift its financial base to Europe. That controversial loophole, in which US companies relocate to countries offering lower corporation taxes, is already under scrutiny by US regulators and is likely to be closed. Walgreen's CEO said the board had decided
against such a move because of the likelihood of drawn-out negotiations with US regulators. However its eagerness to be a good corporate citizen didn't play well with shareholders, who had been looking forward to higher dividends. The newly created Walgreen Boots Alliance will continue to be
headquartered in Chicago, with Walgreens CEO Greg Wasson at its head. Alliance Boots executive chairman and controlling shareholder Stefano Pessina will be its single largest shareholder with an 18% stake worth more than $10bn.
Adbrands Weekly Update 22nd May 2014:
US pharmacy giant Walgreens is said to be weighing up a plan to reverse into its 45%-owned European partner Alliance Boots, in order to shift its tax base out of the US. Alliance Boots, which controls an extensive pharmaceutical wholesale network across Europe, as
well as pharmacy retailer Boots, reported strong performance for its latest financial year to March. Net profits jumped by 31% to £971m on revenues up 4% to £23.4bn. The strongest performance came from wholesaling, with revenues up 4.8%, compared to 2.4% in health & beauty
retail. Walgreens has an option to acquire the 55% stake in Alliance Boots it doesn't already own from February 2015.
Adbrands Weekly Update 22nd Aug 2013: Pharmacy giant Walgreens made changes to the management structure of its UK partner Alliance Boots. Alex Gourlay, previously head of Boots' health & beauty retail business, has transferred to a new role as group
EVP, customer experience & daily living
for Walgreens US. He will
oversee further integration of Boots' own-label products into the Walgreens network, as well as US merchandising and marketing. His former role has been split, with Simon Roberts promoted to managing director, Boots health & beauty UK & Ireland, while Ken Murphy becomes managing director, health
& beauty international & brands.
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