RIL to submit bid for British medical retail chain Boots by month-end
In final bids for Boots, billionaires, and owner of UK’s retail ASDA Group, Issa Brothers, are in the race with TDR Capital, a British private equity firm, and will be the front-runners.
Topics
Reliance Industries | UK | Mukesh Ambani
Mukesh Ambani-owned Reliance Industries Ltd plans to submit a bid for Boots UK, a British medical retail chain, by month-end in a transaction which would cost as much as $10 billion. The acquisition would be the first big ticket overseas investment by Reliance after the company made a string of acquisitions in the American shale gas industry. The deadline for submitting the bid was on Monday, but was extended following a request from the bidders, said a banker. UK based billionaires and owners of UK’s retail ASDA Group, Issa Brothers, are also in the race alongwith TDR Capital, a British private equity firm, and are considered to be the front-runners, say bankers. “This transaction will require a lot of political capital in the British government and the Issa brothers have a lot of clout,” said a banker. “But Ambani and Apollo are also planning an aggressive bid,” the banker said. The Issa brothers – Mohsin and Zubair – acquired ASDA group from Walmart for 6.8 billion pounds in October 2020 and are well known for creating a retail empire via acquisitions.
Also Read: Mukesh Ambani, Britain’s Issa brothers face off in final battle for Boots
A Reliance spokesperson declined to comment. Bankers said Reliance’s overseas subsidiary has tied up with American private equity giant Apollo Global Management to fund the transaction and is in talks to raise funds from overseas banks.
If Mukesh Ambani wins the race, then it would give the billionaire a formidable presence in the European retail market with access to 2,200 stores. RIL has already acquired online drug seller NetMeds in India and the Boots acquisition will help it launch NetMeds abroad and bring the offline retail chain to India.
The drugstore chain is currently owned by American retail giant, Walgreens Boots Alliance and has presence in Unted Kingdom, Ireland, Italy, Norway, the Netherlands, Thailand and Indonesia. Analysts said RIL has ample cash to mount an aggressive bid with cash and liquid investments of Rs 2.4 trillion as on December 31, 2021, at a consolidated level. RIL’s financial flexibility was further supported by sizable bank lines, which usually remain unutilised to the extent of 30-50 per cent, according to ratings firm CRISIL. Acquisition By Reliance Inds since Jan 2017
| Deal Type | Announce Date | Target Name | $ Mn |
| M&A | Mar 23, 2018 | Saavn Media Ltd | 874 |
| M&A | Oct 10, 2021 | REC Solar Holdings AS | 771 |
| INV | Mar 11, 2019 | Pipeline Infrastructure Ltd | 573 |
| M&A | Oct 17, 2018 | Hathway Cable & Datacom Ltd | 534 |
| M&A | Oct 17, 2018 | DEN Networks Ltd | 319 |
| INV | Oct 31, 2021 | Sterling & Wilson Renewable Energy Ltd | 211 |
| M&A | Mar 21, 2022 | Sintex Industries Ltd | 207 |
| INV | Sep 27, 2021 | Glance InMobi Pte Ltd | 200 |
| M&A | Oct 10, 2021 | Sterling and Wilson Renewable | 181 |
| M&A | Apr 23, 2018 | Individual Learning Pvt Ltd | 180 |
Source: Bloomberg Complied by BS Research Bureau
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
First Published: Wed, May 18 2022. 11:13 IST
