On 5th July 2018, the leading retail pharmacy, health and daily living destination, Walgreens Boots Alliance announced that it had received confirmation to go-ahead with its investment in leading pharmacy chain, Sinopharm Holding GuoDa Drugstores (GuoDa), following the receipt of its necessary regulatory approvals.
Acquisition agreement
Now, the company has finalised its previously announced notice to acquire a 40% minority stake in GuoDa, the leading Chinese retail pharmacy chain.
Walgreens Boots Alliance acquired the minority stake in GuoDa through a capital increase of RMB 2.767 bn (€353 mn) and will record the stake as an equity method investment.
CEO comments
“We are delighted that we have received regulatory approvals and our investment agreement has now been completed,” noted Stefano Pessina, Executive Vice Chairman and CEO, Walgreens Boots Alliance.
“We believe GuoDa holds a strong position in the sector, and as a global pharmacy-led health and beauty enterprise, we are well positioned to support its further growth ambition,” added Pessina.
Sharing the company’s outlook on the Chinese market, Pessina noted: “We believe there is great potential in working together to play a transforming role in the evolving Chinese retail pharmacy market.”
Headquartered in Shanghai, GuoDa is a leading national pharmacy chain in China and forms part of China National Pharmaceutical Group Corporation’s (CNPGC) retail platform. Its strategy is to gain further opportunities as the Chinese health care industry aims to grow throughout the country.
Entering into the Asian marketplace has been a core strategy for Walgreens Boots Alliance, which ventured into South Korea in 2016 by teaming up with Shinsegae Group-owned Emart Company.