Menu
03/10/2005
Boots announces £7 billion merger
Health and beauty retailer Boots has announced that it is to merge with rival company Alliance UniChem, in a deal worth £7 billion.
The merger of the two companies, which will be called Alliance Boots, will create one of the largest healthcare retailers in Europe, with 2,600 stores in the UK and sales of £13 billion.
If shareholders and UK competition authorities successfully approve the merger, it is expected to save at least £100 million.
However, Boots has confirmed that 1,000 jobs will be lost as a result of the deal. However, Chairman Sir Nigel Rudd said that the firm did not see this as a “significant number”, considering the 100,000 staff of the combined companies.
Retail union Usdaw said that it would be seeking “urgent talks” with Boots and Alliance UniChem following the announcement.
John Hannett, Usdaw General Secretary, said: “We have long standing agreements with both companies which is good news for our members as we will be able to use those positive relationships to protect the interests of our members.
“We are seeking meetings with both companies this week to find out exactly what the long term implications are for our members as company briefings to staff have made it clear that any significant changes will not happen overnight.”
Boots currently has 1,400 stores in the UK, while Alliance UniChem has 1,200 pharmacies, most of which are in Britain, although it also has a presence in Norway, Italy and the Netherlands.
Boots Chief Executive Richard Baker and Chairman Sir Nigel Rudd are both expected to retain their roles in the new company, if the merger is successful.
Boots shareholders will hold 50.2% of the shares in the combined company.
Established in 1849, Boots has been struggling in recent years against competition from supermarkets, which have been selling medicines and toiletries at cheaper prices. Tesco and Asda have both opened medicine counters, following the relaxation of rules governing where chemists can open in the UK.
Sir Nigel Rudd and Boots Chief Executive Richard Baker are both expected to retain their roles in the new company, if the merger is successful.
(KMcA/SP)
The merger of the two companies, which will be called Alliance Boots, will create one of the largest healthcare retailers in Europe, with 2,600 stores in the UK and sales of £13 billion.
If shareholders and UK competition authorities successfully approve the merger, it is expected to save at least £100 million.
However, Boots has confirmed that 1,000 jobs will be lost as a result of the deal. However, Chairman Sir Nigel Rudd said that the firm did not see this as a “significant number”, considering the 100,000 staff of the combined companies.
Retail union Usdaw said that it would be seeking “urgent talks” with Boots and Alliance UniChem following the announcement.
John Hannett, Usdaw General Secretary, said: “We have long standing agreements with both companies which is good news for our members as we will be able to use those positive relationships to protect the interests of our members.
“We are seeking meetings with both companies this week to find out exactly what the long term implications are for our members as company briefings to staff have made it clear that any significant changes will not happen overnight.”
Boots currently has 1,400 stores in the UK, while Alliance UniChem has 1,200 pharmacies, most of which are in Britain, although it also has a presence in Norway, Italy and the Netherlands.
Boots Chief Executive Richard Baker and Chairman Sir Nigel Rudd are both expected to retain their roles in the new company, if the merger is successful.
Boots shareholders will hold 50.2% of the shares in the combined company.
Established in 1849, Boots has been struggling in recent years against competition from supermarkets, which have been selling medicines and toiletries at cheaper prices. Tesco and Asda have both opened medicine counters, following the relaxation of rules governing where chemists can open in the UK.
Sir Nigel Rudd and Boots Chief Executive Richard Baker are both expected to retain their roles in the new company, if the merger is successful.
(KMcA/SP)
Related UK National News Stories
Click here for the latest headlines.
07 February 2007
Britain braced for heavy snow
Britain is braced for heavy snow as forecasters predict heavy snow showers are to sweep across the country tonight and into tomorrow. The Met Office has issued severe weather warnings, with predictions that between 2cm and 5cm of snow could fall in southeast England, while up to 15cm of snowfall is expected in areas of Wales and the Midlands.
Britain braced for heavy snow
Britain is braced for heavy snow as forecasters predict heavy snow showers are to sweep across the country tonight and into tomorrow. The Met Office has issued severe weather warnings, with predictions that between 2cm and 5cm of snow could fall in southeast England, while up to 15cm of snowfall is expected in areas of Wales and the Midlands.
16 October 2007
Postal Strike Called Off
A planned strike by postal workers for tomorrow has been called off as the Communications Workers' Union considers a deal offered by Royal Mail. The union executive is considering the offer of a 6.9% pay rise, and, if accepted, it will be put to a ballot of the union's 130,000 members.
Postal Strike Called Off
A planned strike by postal workers for tomorrow has been called off as the Communications Workers' Union considers a deal offered by Royal Mail. The union executive is considering the offer of a 6.9% pay rise, and, if accepted, it will be put to a ballot of the union's 130,000 members.
08 June 2015
Boots To Cut 700 Non-Store Jobs
Boots has announced it is to cut around 700 non-store based roles. The news is part of a plan by the company to "address the rapidly changing needs of its customers and patients and continue the transformation of its businesses".
Boots To Cut 700 Non-Store Jobs
Boots has announced it is to cut around 700 non-store based roles. The news is part of a plan by the company to "address the rapidly changing needs of its customers and patients and continue the transformation of its businesses".
14 September 2004
Boots set to withdraw unprofitable services
Some Boots staff face an uncertain future today after the company announced that it is to close its laser eye correction, dentistry, chiropody and laser hair removal businesses. The announcement will impact on around 850 jobs, but the company has said that it aimed to re-deploy "as many people as possible".
Boots set to withdraw unprofitable services
Some Boots staff face an uncertain future today after the company announced that it is to close its laser eye correction, dentistry, chiropody and laser hair removal businesses. The announcement will impact on around 850 jobs, but the company has said that it aimed to re-deploy "as many people as possible".
15 January 2004
900 jobs go at Boots' Nottingham HQ
Up to 900 jobs are set to go at Boots' head office in Nottingham, it has been announced today. The jobs will go over the next six months, saving Boots around £39 million for the year. The redundancies will be managed in accordance with "established company practice" and as many as possible will be achieved through voluntary redundancy.
900 jobs go at Boots' Nottingham HQ
Up to 900 jobs are set to go at Boots' head office in Nottingham, it has been announced today. The jobs will go over the next six months, saving Boots around £39 million for the year. The redundancies will be managed in accordance with "established company practice" and as many as possible will be achieved through voluntary redundancy.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
