Walgreens takes big stake in leading Chinese pharmacy

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Walgreens takes big stake in leading Chinese pharmacy

By Michael Johnsen - 12/07/2017
Walgreens Boots Alliance is expanding its global retail pharmacy operations.

Walgreens on Wednesday announced it was acquiring a 40% stake in Sinopharm Holding GuoDa Drugstores in a deal worth approximately $416 million.

“We are very pleased to become a strategic investor in GuoDa," stated Stefano Pessina, executive vice chairman and CEO, Walgreens Boots Alliance. "It is China’s leading pharmacy chain and we believe that we can positively contribute to its continued successful development with our global pharmacy expertise. We have had a presence in China for around 10 years, initially through Alliance Boots, and we are excited about the opportunity to further invest in the country’s fast growing retail pharmacy sector.”

GuoDa is a leading retail pharmacy chain in China, and has been pursuing its vision for expansion across the country in the context of the ongoing healthcare reforms and increasing importance of the pharmacy channel in the country. It has 3,500 retail pharmacies across 70 cities in China, according to Business Insider.

Walgreens Boots Alliance, as a global pharmacy-led enterprise, believes it is well positioned to provide its significant expertise to GuoDa and support its growth ambitions.

The transaction is subject to regulatory review and approval, and other customary closing conditions. Upon completion, Walgreens Boots Alliance would account for this stake as an equity method investment.

 

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