Walgreens Boots Alliance is reportedly taking initial steps towards potentially selling off its Boots pharmacy chain in the UK.

According to Bloomberg, the US healthcare giant is reportedly reaching out to prospective buyers interested in acquiring the UK retail business for a fee of around £7 billion ($8.8 billion).

According to sources familiar with the matter cited by the outlet, Walgreens is working with advisers to hold preliminary discussions with potential bidders about a possible sale of Boots. However, no formal sale process has been launched yet.

The news that Walgreens is contacting potential Boots buyers sent the company's stock surging over 7 per cent higher on Tuesday morning – a stark relief for the company whose shares have plummeted 42 per cent over the past year as the retailer has grappled with restoring growth and was forced to cut its dividend in half and lower profit forecasts amid reduced consumer spending.

This is not the first time a Boots sale has been considered by Walgreens. In December 2022, reports surfaced that the company had revived discussions around a potential exit from the UK pharmacist, nearly a year and a half after abandoning a planned sale.

At that time, estimates valued Boots at around £7 billion in a potential sale or public listing in London.

Divesting the Boots chain would unwind a massive transatlantic merger that Walgreens orchestrated in multiple stages beginning over a decade ago. The potential sale highlights the challenges Walgreens has faced in integrating the UK business and turning it around after years of ownership.

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