Walgreens drops Boots’ London listing plan to focus on problems at its US pharmacy business

The US owner of Boots has put plans for a float or sale of the chemist on ice.

There had been hopes that the High Street retailer could be listed on the London stock market by the end of 2024.

But it is understood that Walgreens Boots Alliance (WBA) has decided not to make any major decisions over the pharmacy chain until 2025.

WBA chief executive Tim Wentworth, who took over last October, is focusing on fixing problems at the company’s American pharmacy business.

The turnaround project requires capital from Boots to aid this.

Last night hopes were dashed that a London listing of Boots could be just around the corner. But the company did not rule out a listing in the Capital altogether and will revisist the prospect next year. 

This would be a major boost for the City amid concerns over the health of the London market.

However, a sale to a private equity buyer in 2025 is also a possibility.

A spokesman for Walgreens yesterday said: ‘We do not comment on rumours or speculation.

‘Walgreens Boots Alliance is conducting a strategic review of our assets to drive sustainable long-term shareholder value. All options are on the table.’

At the start of the year, Wentworth said he was ‘evaluating all strategic options’ to ‘drive sustainable long-term shareholder value’. 

Back in 2022, Walgreens ditched a sale after blaming an ‘unexpected and dramatic change’ in market conditions.

Private equity giants Apollo, TDR Capital and Sycamore made pitches but Walgreens later said no one made an adequate offer.

Should Boots, which began as a family herbal medicine shop in Nottingham in 1849, return to the UK markets, it would be a desperately needed vote of confidence.

There have been concerns about the attractiveness of the London market as firms switch their listing to New York or become takeover targets due to their low valuations. Walgreens, which is listed on the US stock market, bought the chemist in 2014.

Boots boss Sebastian James hailed ‘positive momentum across the whole business’ in March when he posted bumper Christmas sales.

Sales over the three months to the end of February were 3pc higher than a year earlier thanks to celebrity-endorsed skin care products.

Last November, Boots sold its pension scheme to asset management giant Legal & General for £4.8billion, which paved the way for a potential takeover.

The pension scheme deal, which was one of the largest of its kind, means it will be easier to sell.