Alliance Boots says Walgreens deal will not mean job cuts
Further to the news that US pharmacy giant Walgreens is to acquire a 45% stake in Alliance Boots, the UK pharmacy-led health and beauty chain has said there are no plans for job cuts at the company as a result of the partnership.
Yesterday it was announced that Walgreens is to pay $6.5 billion for the 45% stake in the Alliance Boots and will have the option to buy the remaining 55% of the business in 2015. If approved by industry regulators, the deal will create the first global pharmacy business, with more than 11,000 stores across 12 countries and the world’s biggest pharmaceutical wholesale firm.
In a letter to staff Stefano Pessina, executive chairman of Alliance Boots said: “Given the complimentary geographic footprints, there are no plans for job cuts at either company as a result of the partnership and we remain committed to maintaining all our support offices across Europe, including the Boots UK operational hub in Nottingham.”
The news was welcomed by Usdaw, the union representing shopworkers in the UK, although it is planning to meet with Alliance Boots to get more detail on how the acquisition will affect the company’s UK operations.
Never Miss a Retail Update!David Johnson, Usdaw National Officer said: “We are encouraged by the statement that there are no plans for job cuts and that Alliance Boots remains committed to Nottingham, but talk of synergies worth up to $150 million in the first year and up to $1 billion by 2016 are obviously of some concern.”
“I’ve been in contact with the company today and will be meeting with them shortly to get more detail on how the deal will impact Alliance Boots’ UK operations. This should be an opportunity to grow and improve the business within the UK as well as the rest of the world and we will do all we can to ensure our members’ jobs and conditions of service are not adversely affected by the acquisition.”
