The headlines and column inches in this weekend’s papers are dominated by the fallout from the takeover agreement of Walgreens Boots Alliance and what it means for the UK pharmacy chain Boots.
The US owner of Boots is to be taken private in a $10bn (£7.8bn) deal that will mean further uncertainty for thousands of workers at the UK-based pharmacy chain, The Guardian reported on Friday afternoon.
“Boots staff braced for job cuts after owner sells up to US buyout barons”, The Mail thunders. A business editorial in The Mail from Alex Brummer says that Boots’ uncertain fate adds to worries about our “hollowed out high streets”. The Mail also reckons the City is facing a battle to win a listing for Boots. Pressure is now on ministers and City executives to persuade Sycamore to list Boots on the London stock market through an initial public offering, the paper writes.
The Sunday Times explores what the $10bn sale of Walgreens means for Boots. “Many in the City believe the deal could lay the groundwork for Boots to be relisted or sold from under its American parent,” the paper writes. “But fixing the chain could be a ‘grind’.”
The Financial Times takes a closer look at Sycamore Partners and calls the private equity firm “retail’s last barbarian”. “Sycamore Partners’ $24bn buyout of Walgreens Boots follows a playbook few now dare to use,” the paper reckons.
Oliver Shah in The Sunday Times also profiles Stefano Pessina, the executive chair and majority shareholder of Walgreens Boots. He concludes that the Boots tycoon is one of the business greats, but he had a big blind spot.
With annual results due from the John Lewis Partnership this week, the papers looked ahead at what to expect. The Observer writes that after a tricky few years, the retailer had bounced back. Its piece says that John Lewis partners watch the profits rack up – but still not the bonuses as new chair Jason Tarry says workers will have to wait for cash rewards.
The employee-owned partnership looks likely to report pre-tax profits of £120m, The Times reports, quoting Nick Bubb, an independent retail analyst.
John Lewis staff could miss out on a bonus for a fourth time in five years as costs soar after Labour’s anti-business tax-raising Budget, writes The Mail.
A piece in The Financial Times examines how Asda and Morrisons have struggled under the weight of private equity ownership. “Several years after debt-fuelled takeovers the supermarket chains are grappling with high interest payments and shrinking sales,” the paper writes.
Asda is scrambling to sell off supermarket car parks as executives seek to free up cash to revive the ailing grocer, according to The Telegraph. The company is understood to have kicked off a process to offload almost 10 acres of car parking space and nearby fields at five of its supermarkets. Property sources estimated that the deals could hand Asda a £5m cash boost.
The Guardian picks up on an exclusive report from Sky News that there are only two buyers left in the race to buy retailer WH Smith’s ailing high street division. Restructuring firm Alteri and the Hobbycraft owner Modella Capital, both of which have experience in buying troubled retailers, are the only two parties remaining in talks about a deal.
Private equity-backed petrol station company EG Group is exploring the sale of some of its European businesses to tilt its focus towards the US ahead of an expected listing in New York, according to The Financial Times.
French champagne and Italian Parmigiano cheese are among the European treats under threat should US president Donald Trump impose tariffs on EU imports as producers warn US consumers would struggle to afford them, according to The Financial Times.
The Lex column in The Financial Times examines the latest set of results from Greggs more closely and exclaims the chain is no longer on such a roll.
A feature in The Financial Times takes a look at the lunch disrupters offering workers returning to the office premium, healthier options.
US junk food chains are taking over Britain’s high streets, the owner of the UK’s oldest Indian restaurant has said, according to a story in The Telegraph. Ranjit Mathrani, the founder of MW Eat, has said higher taxes and increased labour costs are playing into the hands of US fast food giants as they are better equipped to cope than smaller independent restaurants.
A feature in The Observer looks at how ‘AI agents’ will change the internet – and grocery shopping lists.
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