Chemist Warehouse owner Sigma Healthcare is in talks with UK pharmacy giant Boots over a $14.2 billion (US$10 billion) acquisition, which would also see it scrap its plans for an Initial Public Offering (IPO).

It comes after Sigma signed a memorandum of understanding to take a 75 per cent stake in a number of GreenLight stores in the UK, in anticipation of its entry into the country. But the Boots deal, the news of which was broken by the Financial Times, could see Sigma take control of Boots’ 1800-strong retail portfolio across the UK and Ireland.

Talks between the Canadian-British Weston family, the owners of Wittington Investments, Loblaws, and Shoppers Drug Mart, over the purchase of Boots have begun. Meanwhile, Sigma has enlisted the help of Goldman Sachs to help give it the edge in the deal and is consulting with bankers.

Private equity firm Sycamore Partners took control of Boots for the same US$10 billion fee last year. The FT said that it has been exploring options for a strategic buyer since before Easter. However, since April, Boots has been working to overhaul its business ahead of a 2027 IPO in London, with a possible sale as part of the process.

Sigma responded to the speculation by telling investors on the ASX that it “continuously reviews opportunities that would create value for shareholders”, while confirming that it has engaged in discussions relating to a sale.

“There is no certainty that any transaction will eventuate,” Sigma added.

Sigma’s merger with Chemist Warehouse was given the green light by the ACCC in May, 2024. Since then, it has created a group worth around $34 billion, making it one of the ASX’s largest retailers.