Boots takeover talks stall after Weston family lowers offer

Boots' proposed £7 billion sale to the Weston family is in jeopardy after private equity owner Sycamore Partners reportedly rejected a reduced bid for the health and beauty retailer.

The two sides have reached a standstill following months of negotiations, according to The Telegraph. A source close to the discussions put the chances of salvaging the transaction at "50/50".

"It isn't totally dead. It's a stand-off. They tried to knock down the price after realising they were the only show in town," the source said.

The Weston family reduced its offer after Australian pharmacy group Sigma Healthcare withdrew from the sale process in June, leaving the family as the only reported bidder.

Sycamore deemed the revised offer unacceptable, although the source said the gap between the two sides could still be bridged.

Through Wittington Investments, the Canadian branch of the Weston family owns Shoppers Drug Mart and holds a controlling stake in Loblaw, Canada's largest supermarket chain.

It also owns British luxury department store Fortnum & Mason, while the British branch of the family continues to control Primark through Associated British Foods.

The potential sale comes only a year after Boots was acquired by private equity firm Sycamore Partners, following the US investment firm's $23.7 billion acquisition of parent company Walgreens Boots Alliance.

The latest reports follow the appointment of a new CEO for Boots, announced in May. Alex Baldock, the former Currys boss, was confirmed as the retailer's next Chief Executive and is due to take up the role in the autumn.