Billionaire Mukesh Ambani’s Reliance Industries Limited (RIL) Walgreens Boots Alliance Inc., according to people familiar with the matter. Is making possible bids for a global drugstore unit of U.S.
RIL is in the early stages of exploring the feasibility of a proposal for the Boots series, said people who asked not to be identified while discussing confidential details.
Ambani, one of India’s richest men, is in the midst of moving his traditionally refinement-focused conglomerate toward businesses that will help him better tap India’s billion-plus consumers. It is also pursuing deals in Europe, including in the telecommunications sector.
Bloomberg News previously reported that the boots could be worth up to £7 billion ($9.1 billion) in sales.
According to people, deliberations are on and there is no certainty that Reliance will decide to take an approach to Boots. A Walgreens representative declined to comment, while a Reliance spokesperson did not immediately provide comment.
Shares of Walgreens, which also owns Duane Reade and Mexico’s Benavides, closed up 0.8% on Wednesday, valuing the Deerfield, Illinois-based business at about $39 billion.
Walgreens began selling the boots earlier this year. It includes Apollo Global Management Inc. and interest from private equity firms, including TDR Capital. This attracted Bain Capital and CVC Capital Partners, who joined forces and were considered early favorites before abandoning their pursuit. One of the people said that the bidders who are keen on Boots can also consider teaming up.
Bloomberg News previously reported that Walgreens is weighing a potential initial public offering of Boots, which operates a chain of around 2,200 stores in the UK, including brands such as No7 Beauty Co.
According to the public, some private equity bids have been well below Walgreens’ desired price, raising the possibility of a sale process or listing stalling. He said the US-based company could make a decision in the coming weeks and choose to hold a minority stake in Boots in any transaction. Boots also has smaller operations in Ireland, Norway, the Netherlands and Thailand, as well as an optician business and a suite of private-label beauty and personal care brands that can be included in sales.