Walgreen, Alliance Boots To Merge.(An interview with Ornella Barra)

Byline: VICKI M. YOUNG and FAYE BROOKMAN WITH CONTRIBUTIONS FROM SAMANTHA CONTI

Walgreen, Alliance Boots to Merge

Walgreen and Alliance Boots are set to create the world's first global pharmacy-led health and beauty group, as well as the largest international wholesale and distribution network in the industry.

Walgreen Co. is set to acquire a 45 percent equity stake in Alliance Boots GmbH, in a cash-and-stock transaction valued at $6.7 billion. The newly merged company will have 365,000 employees and more than $110 billion in combined revenue. It will be present in 30 countries, with three major brands: Walgreens, Boots and Alliance Healthcare. It will also have more than 11,000 stores in 12 countries.

The deal comprises $4 billion in cash and 83.4 million shares, and is expected to close by Sept. 1, subject to the requisite regulatory approvals. Terms of the transaction also give Walgreens the option of acquiring the remaining 55 percent of Alliance Boots three years from now. At the current Walgreens share price and dollar-euro exchange rate, an acquisition of the balance of Alliance Boots would …