Chemist Warehouse owner eyes $14bn Boots buyout
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Chemist Warehouse could be about to pull off one of the biggest overseas takeovers by an Australian retailer, with a potential $14 billion purchase of British pharmacy giant Boots.
Parent company Sigma Healthcare confirmed the discussions today, though it cautioned investors the blockbuster deal is far from guaranteed.
Chemist Warehouse parent Sigma is eyeing a $14b takeover of British retailer Boots. Supplied
“Sigma continuously reviews opportunities that would create value for shareholders and has engaged in preliminary discussions in relation to the sale process,” the company said in a statement to the ASX.
“There is no certainty any transaction will eventuate.”
The talks were first reported by the Financial Times, which said Boots owner Sycamore Partners had approached a number of buyers after taking control of the business last year.
Sigma is understood to be among the interested parties, alongside other potential bidders including Canada’s Weston family, which owns supermarket chain Loblaws and pharmacy retailer Shoppers Drug Mart.
A successful deal would hand the Australian company a household name on the British high street and dramatically expand Chemist Warehouse’s international footprint.
Founded in 1849, Boots is one of Britain’s best-known pharmacy and beauty chains. Hollie Adams
Sigma Healthcare became the owner of the Chemist Warehouse franchise after the businesses merged in early 2025, establishing a retail and wholesale healthcare business worth about $34 billion.
The combined group has almost 1000 stores operating under the Chemist Warehouse, Amcal and Discount Drug Stores brands, making it one of Australia’s largest pharmacy businesses.
Chemist Warehouse has built its reputation on a high-volume, low-margin model aimed at keeping prices down for customers and has already been laying the groundwork for a bigger presence overseas.
A successful deal would hand the Australian company a household name on the UK high street. Flavio Brancaleone/AFR
Just last month, Sigma announced a deal to take a 75 per cent stake in British pharmacy group GreenLight Healthcare, paving the way for the Chemist Warehouse brand to enter the UK market.
The London-based pharmacy group currently operates 22 stores, with plans to initially convert up to five locations into Chemist Warehouse outlets and could expand further if the concept proves successful.
“Having proven that the Chemist Warehouse model resonates with customers in other markets, including New Zealand and Ireland, the JV with GreenLight now provides a measured market access into the UK,” Sigma chief executive and managing director Vikesh Ramsunder said at the time.
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