Walgreens stock falls after decision to keep Boots, No7 Beauty businesses after lack of adequate buyout interest

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Shares of Walgreens Boots Alliance Inc. WBA, +1.30% fell 1.7% ion premarket trading Tuesday, after the drugstore chain said it decided to keep its U.K.-based health and beauty retailer Boots and No7 Beauty Company businesses. Walgreens said decision followed the completion of a strategic review of the businesses announced in January. Walgreens said that while the decision followed discussions with a range of prospective buyers expressing “significant interest” in the businesses, the financial markets suffered “unexpected and dramatic change” since the review process began. “As a result of market instability severely impacting financing availability, no third party has been able to make an offer that adequately reflects the high potential value of Boots and No7 Beauty Company,” Walgreens stated. “Consequently, WBA has decided that it is in the best interests of shareholders to keep focusing on the further growth and profitability of the two businesses.” Walgreens’ stock has dropped 19.1% year to date through Monday, while the Dow Jones Industrial Average DJIA, -0.20% has declined 13.5%.

This article was originally published by Marketwatch.com. Read the original article here.

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