Walgreens Boots Alliance to Acquire Stakes in Guoda Drugstores
The Strategic Collaboration between Chinese and Global Pharmacy Retail Giants Opens a New Chapter for Sinopharm in the Retail Industry
06 Dec 2017
(December 6, 2017 – Hong Kong) Sinopharm Group Co. Ltd. (“Sinopharm” or the “Company”, Stock Code: 1099.HK), the biggest wholesaler and retailer of pharmaceutical and healthcare products, as well as a leading supply chain service vendor in China, today announces a strategic collaboration between one of its subsidiaries, China National Accord Medicines Co., Ltd. (“Accord”, Stock Code: 000028.SZ) and Walgreens Boots Alliance (“WBA”, Nasdaq: WBA), a global pharmacy-led, health and wellbeing enterprise.
WBA, through its wholly-owned subsidiary in Hong Kong, has signed an agreement to purchase a 40% equity stake of Sinopharm Holding Guoda Drugstores Co., Ltd. (“Guoda”), through a capital increase worth CNY 2.767 billion. Accord holds the remaining 60% shares. The transaction is subject to review and approval from relevant regulatory authorities of the Chinese government.
The strategic collaboration between Chinese and global pharmacy retail giants will mark a new chapter in realizing the Company’s great vision in the pharmacy retail industry. Sitting in a leading position in the industry and supported by WBA’s deep pharmacy expertise and retail experiences around the world including category management, omni-channel marketing, store expansion, loyalty program and global sourcing solutions, Guoda will benefit to further upgrade operation standards, improve efficiencies, and transform its business model to differentiate from domestic competitors. Moreover, in line with the “Belt and Road Initiative” endorsed by the Chinese government, Sinopharm and its subsidiaries will work together with WBA to explore potential opportunities in the broader Asian and global markets.