Drugstores Boots Group PLC and Alliance UniChem PLC have decided to merge in order to compete more effectively with the supermarket chains. ‘Boots the Chemist’ is a household name in the UK; it as well known as the BBC or Marks and Spencers.
The merger will be worth £7 billion ($12.6 billion), of which £4 billion is Boots and £3 billion is Alliance UniChem.
The new company aims to generate half of its profits abroad by 2010.
The two companies say the merger will be completed in 2006.
Alliance Boots will have:
— £13 billion sales ($23.4 billion)
— 2,600 stores (UK)
— 300 stores (Continental Europe)
— Wholesale & Distribution Network for 88,000 stores in Europe
Written by: Christian Nordqvist
Editor: Medical News Today