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- 📈 Boots To Be Taken Over In $10bn Deal
📈 Boots To Be Taken Over In $10bn Deal
This is Cliff Equity, the UK’s business newsletter that keeps you informed on what’s important in tech, business and finance in less than 5 minutes
In today’s stories:
Boots To Be Taken Over In $10bn Deal
Investors Flee UK Funds—£3bn Says Goodbye!
SpaceX Rocket Blows Up, Flights Grounded!
The summary: Boots is stepping into a new chapter as US private equity firm Sycamore Partners takes over its struggling parent company, Walgreens, in a $10bn deal—bringing fresh opportunities, a dash of uncertainty, and the chance for a much-needed high street revival.
The details:
Boots' New Boots – US private equity firm Sycamore Partners is snapping up Walgreens Boots Alliance for a cool $10bn, marking the end of Walgreens' 98-year run on public markets. Time to hang up those stock market boots!
A Prescription for Change – Once a $100bn giant, Walgreens’ value has crumbled by 90% since 2015, weighed down by $30bn in debt. Sycamore’s buyout includes a potential sweetener for investors, adding up to a hefty $23.7bn deal.
Will Boots Walk Alone? – Speculation swirls that Sycamore may spin off or sell Boots, leaving its 50,000 UK employees wondering if they’ll be footing it alone in yet another ownership shuffle.
Pessina’s Not Packing – Walgreens' billionaire executive chair, Stefano Pessina, is keeping a minority stake, sticking around like a pharmacist who just won’t hand over the prescription.
Why it matters: High street stalwart Boots could be in for yet another shake-up, meaning its 50,000 UK employees and countless loyal shoppers may soon find themselves at the mercy of private equity’s ruthless cost-cutting playbook. Walgreens, once a $100bn retail titan, has seen its fortunes nosedive in the face of online competition—proof that even pharmacy giants aren’t immune to the Amazon effect. And with Sycamore likely to chop, change, or offload parts of the business, Boots' future could be about as steady as a trolley with a wonky wheel.
The summary: Despite investors bolting from UK funds amid economic jitters, brighter spots like North American inflows and bond resilience show that savvy moves can still be made in a shifting market.
The details:
Investors did a U-turn – After merrily pumping £2.3bn into funds in December, they yanked out £3bn in January, spooked by sluggish GDP growth, rising inflation, and the looming threat of tax hikes.
UK funds took a battering – The UK All Companies sector saw a whopping £1.2bn outflow, while smaller UK firms weren’t spared either, shedding £206m as investors eyed domestic instability with suspicion. Meanwhile, North American funds quietly raked in £358m.
Political jitters and market wobbles – Trump's return, tariff fears, and AI-driven economic shifts had investors playing the waiting game, expecting a rollercoaster year ahead.
Bonds and mixed assets: the reluctant winners – Amid the chaos, bonds scraped in £187m and mixed assets £39m, as investors clung to the promise of higher yields and potential interest rate cuts.
Why it matters: When investors start yanking billions out of UK funds while stuffing cash into North America, it’s a clear sign they’ve lost faith in Britain’s economic prospects—never a good look. With inflation creeping up, tax hikes on the horizon, and GDP growth stuck in the mud, businesses and markets are bracing for a rough ride. Meanwhile, bonds are having a moment, proving that when uncertainty reigns, the safest-looking ship gets the most passengers—even if it’s not the most exciting voyage.
The summary: SpaceX’s Starship keeps exploding, leaving flaming debris over the Caribbean, but with Musk’s Mars dreams still alive, at least airports can now add "rocket-related delays" to their repertoire!
The details:
Houston, We Have a ‘Rapid Unscheduled Disassembly’ – SpaceX’s record-breaking Starship rocket went out with a bang (quite literally), spinning out of control and exploding over the Caribbean. No injuries, just a bit of unexpected fireworks for islanders below.
Falling Rockets, Grounded Planes – Airports in Florida briefly halted flights as authorities worried about fiery bits of spaceship raining from the sky. The FAA, clearly unimpressed, was already investigating January’s Starship failure.
Déjà Vu Disaster – This marks the second consecutive Starship failure and yet another round of “pre-planned contingency responses.” At this rate, SpaceX could start offering a loyalty programme for explosion clean-ups.
Mars Can Wait – While Musk dreams of interplanetary travel, Starship is struggling to stay in one piece. NASA still hopes to hitch a lunar ride on a future (non-explosive) version, but for now, it’s back to the drawing board.
Why it matters: SpaceX’s repeated Starship mishaps are a rather explosive reminder that rocket science is, in fact, difficult—especially when your goal is colonising Mars. With NASA banking on a future version for Moon landings and the FAA already unimpressed, each fiery failure adds pressure to get it right. In the meantime, Florida airports will have to keep "falling spaceship delays" on their list of potential travel disruptions.
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