Boots: Now half-American
You may recall that in 2012, Walgreens bought a 45% stake in Britain's biggest biggest pharmacy chain. With the completion of the merger, Walgreens will implement a number of cost-reduction initiatives.
The company is aiming for revenue of around £75billion for 2016, which means there are going to be savings at ‘corporate, field and store level’.
Walgreens reckon this is going to create a global leader in "pharmacy-led health and well-being retail", which we think means 'some people are going to have a great sense of well-being with all the fantastic amounts of money there is to be made from medicine and pumice stones.'
Importantly, this deal's going to create the world's largest pharmaceutical wholesale and distribution network which will deliver the goods to more than 180,000 pharmacies, doctors, health centres and hospitals in 20 countries. Ker-ching!
This newly formed company will be called Walgreens Boots Alliance and the new headquarters will be in Chicago, which is unusual as most American companies move to Europe after a takeover of a British firm as they have to pay less tax.
Greg Wasson, who will become president and chief executive of Walgreens Boots Alliance, said that the company have set up an independent committee to analyse if they should move their tax base to Switzerland or wherever, but have decided against it to avoid any political controversy and a threat of litigation by the US Internal Revenue Service.
So there you have it. Boots is half American now. There's going to be some changes to the best known pharmacy on the British high street.