US private equity giant Apollo is in talks with a number of banks including Bank of America, Credit Suisse and the Royal Bank of Canada to finance a £6bn purchase of Boots, the UK’s largest high street chemist, from current owners Walgreens Boots Alliance.
Sky News reported today that, while raising capital through debt markets has become harder since the Russian invasion of Ukraine, Apollo is unlikely to encounter difficulties raising the necessary finance for a bid for Boots.
A new round of bids for Boots is expected in April with Apollo and the owners of Asda – TDR Capital and EG – regarded as the only two serious prospective buyers for the business, according to Sky News.
While a PE consortium of Bain Capital and CVC showed early interest in Boots, they subsequently decided against bidding on valuation grounds.
Apollo has declined to comment.
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