(Reuters) -Walgreens Boots Alliance is in early talks over separating its UK-based Boots drugstore chain, including the possibility of an initial public offering in London, Bloomberg News reported on Tuesday.
The drugstore chain could be valued at about 7 billion pounds ($8.78 billion) in any deal, the report said citing people familiar with the matter.
Walgreens in June last year scrapped its plans to sell the UK high street pharmacy chain, saying no third party was able to make an adequate offer due to the turmoil in global financial markets.
The company could also opt to invite fresh offers for Boots, the report said, adding deliberations were still at a preliminary stage and there was no certainty they will lead to a transaction.
Shares of Walgreens rose 1.85% in afternoon trading.
The U.S. pharmacy chain operator tapped Tim Wentworth as its CEO in October, pinning hopes on the healthcare industry veteran as Walgreens grapples with sharply lower sales from COVID vaccinations and testing, along with decreased spending by inflation-weary consumers.
Walgreens did not immediately respond to a Reuters request for comment.
($1 = 0.7969 pounds)
(Reporting by Sriparna Roy in Bengaluru; Editing by Krishna Chandra Eluri)
