Boots-Alliance Unichem EGM dates set as merger reaches final stages
Boots,, the largest pharmacy and personal care retailer in the UK,
has significant operations worldwide, and wants to merge with the
European-wide retailer and distributor of pharmaceutical and healthcare
products in an effort to increase its presence throughout Europe.
The fourth of July has been set as the dates for the EGM of both
Boots (10am) and Alliance Unichem (10:45 am) when shareholders for both
companies will be able to vote on the resolutions required to approve
and implement the merger.
Early last month Boots released a statement saying that both boards
expect that all outstanding pre-conditions and conditions will be
satisfied to enable the merger to become effective on 31 July 2006.
In recent years Boots has been doing well to keep its head above
water in an overheated and highly competitive market - a problem that
is reflected throughout the Western European region.
The company reported that its annual sales for the year ending in
December were up 1.6 per cent to reach £5.44bn, while sales for the
most recent quarter grew by 3.3 per cent, representing a strong
performance during the retailer's all-important Christmas trading
The company's beauty division currently accounts for around 40 per
cent of its sales, with the healthcare division accounting for around
45 per cent.
Boots has enjoyed some success from its increased move towards
premium brands, having signed a number of new contracts with brands
representing this category.
Toiletries, however, remain one of the biggest areas of challenge
for the company, as European-wide, the market remains saturated and
extremely competitive, with aggressive discounting driving margins