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| US retailer Walgreen buys 45% stake in Alliance Boots | US retailer Walgreen buys 45% stake in Alliance Boots |
| (40 minutes later) | |
| US retailer Walgreen is to pay $6.7bn (£4.3bn) for a 45% stake in UK rival Alliance Boots. | US retailer Walgreen is to pay $6.7bn (£4.3bn) for a 45% stake in UK rival Alliance Boots. |
| The cash and shares offer will cement Walgreen's position as the world's biggest pharmacy chain. | The cash and shares offer will cement Walgreen's position as the world's biggest pharmacy chain. |
| Alliance Boots runs a chain of chemists in the UK and more than 3,300 health and beauty retail stores in 11 countries around the world. | Alliance Boots runs a chain of chemists in the UK and more than 3,300 health and beauty retail stores in 11 countries around the world. |
| The company's wholesale business supplies pharmacies and doctors in 21 countries. | The company's wholesale business supplies pharmacies and doctors in 21 countries. |
| Boots has been a name on the UK High Street since 1849, when it was set up in Nottingham by John Boot as a family run herbal medicine shop. | |
| The deal between US giant Walgreen's and Alliance Boots is set to create the first global pharmacy business, with 11,000 stores in 12 countries. | |
| Walgreens has handed over £2.5bn in cash and more than 83 million shares for a 45% ownership stake, and it has an option to take over Boots in three years. | |
| Boots was bought out by private equity firm KKR for £11bn in 2007 in one of the UK's largest-ever private equity deals. KKR is in early-stage talks over an £8bn takeover of Orange and T-Mobile group Everything. | |
| As part of the deal, Walgreen would have the option of buying the outstanding Boots shares by 2015, valuing the company at $9.5bn in total. | As part of the deal, Walgreen would have the option of buying the outstanding Boots shares by 2015, valuing the company at $9.5bn in total. |
| Profit boost | |
| The Illinois-based company operates 7,890 pharmacies across the United States. | |
| Boots is smaller than its US rival but is Europe's biggest seller of health and well-being products. It also has strong internet sales. | |
| Walgreen will pay $4bn in cash and swap more than 83 million shares for its stake in the privately-held Alliance Boots. | |
| As a sweetener to shareholders, Walgreen raised its dividend payment from 22.5 cents to 27.5 cents. | |
| The deal still needs to be approved by industry regulators. | The deal still needs to be approved by industry regulators. |