Yahoo Finance Indian tycoon Mukesh Ambani plots Boots takeover
One of India’s richest businessmen is plotting a joint takeover bid for the high street chain Boots.
Mukesh Ambani, the biggest shareholder and chairman of Reliance Industries, is reportedly working on a potential offer with US buyout firm Apollo Global Management.
If successful, Mumbai-based Reliance would seek to expand one of the UK’s best-known retailers into India, southeast Asia and the Middle East, the Financial Times first reported.
It comes after Boots owner Walgreen Boots Alliance decided to put the chemist up for sale following a review of the business in January, as it renews its focus on the US business.
Under the plan, Reliance and Apollo would own stakes in Boots, which is understood to be valued at £5bn to £6bn, although it was not clear if they would be the same size.
Indian conglomerate Reliance is reportedly not thought likely to table a standalone bid, however.
Mr Ambani is the eighth richest person in the world and the second richest person in Asia, with an estimated net worth of more than $100bn (£80bn), according to the Bloomberg Billionaires Index.
His late father, Dhirubhai Ambani, set up a textile manufacturer that would eventually become Reliance Industries.
Separately, the billionaire Issa brothers and their private equity partner TDR have also been linked to the bidding process, which is expected to come to a head on May 16.
One of the challenges prospective suitors will have to contend with is higher borrowing costs, as debt will be required to complete the deal, as well as reassuring pension trustees that they will be good custodians for Boots’ £8bn pension scheme.
Seb James, Boots’ UK boss, insisted last week that there was still "a lot of interest" in the group.
Reliance Industries and Apollo have been contacted for comment.
