Walgreens seeks to sell its UK-based drugstore chain: BBG

Shares of Walgreens Boots Alliance (WBA) are trading higher on a report from Bloomberg revealing that the pharmaceutical company is contacting potential buyers to sell its United Kingdom-based Boots drugstores. The chain could be valued at around $8.8 billion.

Yahoo Finance Anchors Josh Lipton and Julie Hyman discuss the latest development for the company and what it could mean for the stock moving forward .

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This post was written by Nicholas Jacobino

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Chairs of Walgreens boots.

Let's start.

There are live prior today on the back of a report, the pharmacy giant was looking to sell its arm of its armored drugstores in the UK, this acquainted to Bloomberg.

So this was an interesting one.

So the news and again, this is per Bloomberg Julie s signing sources.

They kind of reaching out.

It sounds like they kind of gauge interest in the drugstore chain.

Um Early stage discussions, apparently possible bidders.

We're not sure no formal sales process yet, but the chain could be valued if it goes through at around 9 billion in an exit, which explains investor reaction.

Yeah, I mean, what's interesting here is, um it was just about a decade ago that they became Walgreens boots because they bought the thing in the first place and it was sort of a series of different transactions and stages that led to the deal going on.

But Walgreens has had a really lousy year, the shares are down sharply here.

It hasn't been growing, cut its dividend.

Um And so, you know, it looks like it might be coming from a place of weakness, certainly rather than strength as it tries to figure out whether this would make sense.

Yeah, I mean, to your point, it's been under a ton of pressure to pull up a chart there and uh the stock's been hammered with the capital Turners, you mentioned lower the profit outlook talking about consumer spending, not great on non essentials, they said, so investors may be getting some relief from that headline.