Britain’s billionaire Issa brothers and Indian tycoon Mukesh Ambani prepare to face off in the final battle shoe drug store Chain, one of the most recognizable names on the UK’s High Street.
Sources said Issas is being seen as the party ahead of next week’s deadline for proposals, as they submitted the highest proposal in the first round. Both are going up against Ambani, who is working on a bidding deal with buyout firm Apollo Global Management Inc.
Bidders are now sizing up Boots’ billions of pension guarantees—which they’ll have to take—as they figure out how much they can pay for the business. They are working round the clock to arrange financing in a tough market, which has been made difficult by the war in Ukraine, rising inflation and rising interest rates, according to sources.
Sources said it’s a lot to sort out, and that the chain’s owner Walgreens Boots Alliance Inc. is getting a few extra days to solidify its bid after pushing the May 16 deadline back later in the week.
A deal would fit well with Issas’ empire-building ambitions. In recent years, they have gone on an acquisition spree that has transformed their core company Easy Group into a global gas station and convenience store colossus. They have spun off UK supermarket operator Asda Group Ltd and the Lyons chain of fast casual restaurants.
Ambani’s rise promises to keep the race competitive. Apollo is known to be wary of overpaying on deals, which has cost it auctions to British companies such as Asda and packaging firm RPC Group plc. Joining India’s second richest man can give him firepower.
An outstanding question is how close Walgreens will be able to get to its asking price of £7 billion. People said bidders had valued it at around £5 billion, although it is possible that they may have boosted their offers after due diligence. bloomberg
Sources said Issas is being seen as the party ahead of next week’s deadline for proposals, as they submitted the highest proposal in the first round. Both are going up against Ambani, who is working on a bidding deal with buyout firm Apollo Global Management Inc.
Bidders are now sizing up Boots’ billions of pension guarantees—which they’ll have to take—as they figure out how much they can pay for the business. They are working round the clock to arrange financing in a tough market, which has been made difficult by the war in Ukraine, rising inflation and rising interest rates, according to sources.
Sources said it’s a lot to sort out, and that the chain’s owner Walgreens Boots Alliance Inc. is getting a few extra days to solidify its bid after pushing the May 16 deadline back later in the week.
A deal would fit well with Issas’ empire-building ambitions. In recent years, they have gone on an acquisition spree that has transformed their core company Easy Group into a global gas station and convenience store colossus. They have spun off UK supermarket operator Asda Group Ltd and the Lyons chain of fast casual restaurants.
Ambani’s rise promises to keep the race competitive. Apollo is known to be wary of overpaying on deals, which has cost it auctions to British companies such as Asda and packaging firm RPC Group plc. Joining India’s second richest man can give him firepower.
An outstanding question is how close Walgreens will be able to get to its asking price of £7 billion. People said bidders had valued it at around £5 billion, although it is possible that they may have boosted their offers after due diligence. bloomberg