Sigma shares jump 8% after dropping A$14bn Boots bid

Sigma Healthcare shares rose 8% to A$2.85 after the company said it had halted talks to buy The Boots Group, ending consideration of a possible A$14 billion (about $10 billion) acquisition.

In an ASX filing, Sigma said it would immediately end discussions after a preliminary review found the transaction “would not currently meet its strategic and capital investment objectives.” The filing described the opportunity as a “potentially unique opportunity” to accelerate expansion in the UK but said the review did not support the purchase.

Sigma confirmed on June 10 that it had held preliminary discussions about acquiring Boots, which operates more than 1,800 stores in the UK and nearly 4,000 locations worldwide. Boots’ owner, US private equity firm Sycamore Partners, has been exploring options for the chain after acquiring Walgreens Boots Alliance in a transaction valued at up to $23.7 billion last year. Market estimates had placed a potential sale at around $10 billion.

When Sigma first disclosed it had joined the Boots sale process, its shares fell about 5.5% to A$2.76 on June 10. Monday’s 8% rise to A$2.85 more than erased that loss.

Analysts had flagged timing, funding and integration risks given Sigma completed an A$8.8 billion reverse merger with Chemist Warehouse in February 2025. Sigma’s market value has recently been estimated between A$31.8 billion and A$33.7 billion, making a roughly A$14 billion acquisition large relative to its market capitalisation.

Sigma said it will concentrate on opportunities that fit its current strategy and capital framework, and emphasised capital discipline and strategic fit as reasons for ending the talks.

The decision closes Sigma’s brief interest in Boots and leaves the UK chain open to other potential bidders.