Sigma Healthcare has pulled out of negotiations to buy Boots, ending a brief and closely watched pursuit of one of Britain's best-known pharmacy and beauty chains.
The Australian pharmacy business said it had "elected to withdraw its interest and cease discussions immediately," concluding that an acquisition "would not currently meet its strategic and capital investment objectives."
Sigma had entered the process because Boots represented a "potentially unique opportunity" to accelerate its UK operations, but that rationale proved insufficient to sustain the bid.
The company said its commitment to the UK market remains intact, pointing to its earlier acquisition of a stake in London-based Greenlight Healthcare.
Boots, which was separated from US operations by private equity owner Sycamore Partners in August last year after Sycamore acquired parent Walgreens Boots Alliance for approximately $23.7 billion, is reported to carry a valuation of around $10 billion.
The Weston family's Canadian branch, majority owner of grocery chain Loblaws, has also been reported to have held talks over a potential purchase.
Sycamore is understood to be weighing a London Stock Exchange initial public offering for Boots as an alternative exit, though a private sale rather than an IPO would represent another setback for a London market already starved of major new listings.
