Britain’s billionaire Issa brothers and Indian tycoon Mukesh Ambani are preparing to face off in the final battle for UK's Boots drugstore chain. The Issa brothers are seen as the party to beat ahead of next week’s deadline for proposals, after they submitted the highest offer in the first round, people with knowledge said. The duo are going up against Ambani, who’s been working on a bid together with buyout firm Apollo Global Management Inc.
Bidders are now sizing up Boots’ billions in pension guarantees - which they’ll have to take on - as they figure out how much they can pay for the business, people in the know said. They’re also working around the clock to arrange financing.
That’s a lot to sort through, and suitors are getting a few extra days to firm their bids up after the chain’s owner Walgreens Boots Alliance Inc. pushed back the May 16 deadline to later in the week, the people said.
A deal would fit in well with the Issas’ empire-building ambitions. In recent years, they’ve gone on an acquisition spree that’s turned their main company EG Group into a global gas station and convenience store colossus. They’ve snapped up UK supermarket operator Asda Group Ltd. and the Leon chain of fast casual restaurants.
