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| Version 1 | Version 2 |
|---|---|
| Walgreens to buy up Alliance Boots | Walgreens to buy up Alliance Boots |
| (36 minutes later) | |
| High Street chemist Alliance Boots is to be bought up by US pharmacy giant Walgreens. | High Street chemist Alliance Boots is to be bought up by US pharmacy giant Walgreens. |
| The board of Walgreens will now seek shareholder approval for the £9bn deal to go through. | The board of Walgreens will now seek shareholder approval for the £9bn deal to go through. |
| Walgreens bought a 45% stake in the company in 2012, and now wants to buy the remaining 55% stake. | Walgreens bought a 45% stake in the company in 2012, and now wants to buy the remaining 55% stake. |
| The firm said it would not use the deal to alter its current tax structure, and expects the merged company to be based in Chicago. | The firm said it would not use the deal to alter its current tax structure, and expects the merged company to be based in Chicago. |
| "We are excited to move forward with the next important step in becoming a new kind of global health care leader," said Walgreens chief executive Greg Wasson. | "We are excited to move forward with the next important step in becoming a new kind of global health care leader," said Walgreens chief executive Greg Wasson. |
| Walgreens said it would invest "across core businesses at suitable returns to drive organic growth". | Walgreens said it would invest "across core businesses at suitable returns to drive organic growth". |
| However, it will also look to make cost reductions of $1bn over three years at "corporate, field and store-level". | However, it will also look to make cost reductions of $1bn over three years at "corporate, field and store-level". |
| The new combined company will be called "Walgreen Boots Alliance", and its headquarters will be in the Chicago area, Walgreens said. | The new combined company will be called "Walgreen Boots Alliance", and its headquarters will be in the Chicago area, Walgreens said. |
| Boots will remain at its UK headquarters in Nottingham. | Boots will remain at its UK headquarters in Nottingham. |
| Mr Wasson will become chief executive of the new company, and Stefano Pessina, who is currently executive chairman of Alliance Boots, will report to Mr Wasson. | Mr Wasson will become chief executive of the new company, and Stefano Pessina, who is currently executive chairman of Alliance Boots, will report to Mr Wasson. |
| Tax plan ditched | |
| Walgreens said it had thoroughly evaluated moving its headquarters abroad for tax purposes, but that the move would not have been feasible under current US tax rules. | |
| A move would have put it at too much risk from scrutiny by the US tax authority, the Internal Revenue Service (IRS), the company said. | |
| "We took into account all factors, including that we could not arrive at a structure that provided the company and our board with the requisite level of confidence that a transaction of this significance would need to withstand extensive IRS review and scrutiny," Mr Wasson said. | |
| In addition, public opinion may have been against a move for tax purposes, the company added. | |
| In May, pharmaceutical company Pfizer dropped a bid for UK company AstraZeneca following an outcry that it was partly motivated by a wish to buy the firm for tax reasons. | |
| Being domiciled abroad is attractive for US companies because of the relatively high rate of US corporation tax compared with other countries. |