Apollo in talks with banks to fund £6 billion Boots takeover bid

The New York-based investment giant Apollo has begun talks with banks to provide funding for a £6 billion takeover of chemist retail chain Boots.

Sky News reported that Apollo is talking to the Bank of America, Credit Suisse and Royal Bank of Canada to provide debt funding to finance the takeover. However, debt markets have become more difficult since Russia's invasion of Ukraine.

It was announced in January that Boots's US-based parent company Walgreens Boots Alliance had started the sale process of the chemist. The Boots business was previously valued at £7 billion by Bloomberg.

A new round of bids is expected next month as meetings continue between Boots management and bidders.

Apollo and Asda are now thought to be the only prospective buyers for Boots, after Sycamore Partners revealed that it was looking at acquiring fashion brand Ted Baker.