Walgreens Boots Alliance completes GuoDa investment
Walgreens Boots Alliance is now officially a 40% stakeholder in Chinese pharmacy chain GuoDa. The investment in Sinopharm Holding GuoDa Drugstores was announced in December 2017, but cleared regulatory hurdles on Thursday. The investment came shortly before the Deerfield, Ill.-based company reducing its stake in Chinese wholesaler Guangzhou Pharmaceuticals from 50% to 20%.
The minority stake in GuoDa, which is China’s leading retail pharmacy chain, was acquired through a capital increase worth roughly $416 million, and Walgreens Boots Alliance said it would account for the stake as an equity method investment.
“We are delighted that we have received regulatory approvals and our investment agreement has now been completed,” WBA executive vice chairman and CEO Stefano Pessina said. “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. We are looking forward to sharing our international best practices and pharmacy expertise. We believe there is great potential in working together to play a transforming role in the evolving Chinese retail pharmacy market.”
The minority stake in GuoDa, which is China’s leading retail pharmacy chain, was acquired through a capital increase worth roughly $416 million, and Walgreens Boots Alliance said it would account for the stake as an equity method investment.
“We are delighted that we have received regulatory approvals and our investment agreement has now been completed,” WBA executive vice chairman and CEO Stefano Pessina said. “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. We are looking forward to sharing our international best practices and pharmacy expertise. We believe there is great potential in working together to play a transforming role in the evolving Chinese retail pharmacy market.”