Alliance Boots Acquires Minority Stake In Nanjing Pharmaceutical, Aims For Pole Position In Consolidation Of China's Retail Market

Alliance Boots acquired a minority stake in Nanjing Pharmaceutical, the fifth largest pharmaceutical wholesaler in terms of sales in China. Stefano Pessina, Alliance Boots executive chairman who led the sale of a stake in the retailer to United States-based pharmacy chain Walgreens, said China's retail market is poised for further consolidation. After selling 45 percent of Alliance Boots to Walgreen for about $6.5 billion, Pessina is looking forward to the second phase of the deal with the American retailer, which has the option to acquire the remaining 55 percent of the company for about $9.5 billion more in cash and shares and assumption of outstanding debt.