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Wednesday, August 6, 2014

Walgreen to keep U.S. tax domicile after buying Alliance Boots, (NYSE: WAG)

U.S. retailer Walgreen Co said it would not use a full takeover of Europe's biggest pharmacy chain, Alliance Boots, to move its domicile overseas, following fierce criticism of such tax-cutting deals at home.Walgreen will purchase the 55 percent it does not already own of Alliance Boots for 3.13 billion pounds ($5.3 billion) in cash and 144.3 million shares, giving a total deal of about $15 billion.Walgreen shares fell as much as 16 percent to $58.30 on Wednesday.The U.S. group said the combined company, with more than 11,000 stores in 10 countries, would keep its tax domicile in the United States, with headquarters in the Chicago area. It is targeting combined revenue for 2016 of $126-130 billion.

Walgreen Co. (Walgreens), together with its subsidiaries, operates as a retail drugstore chain in the United States. Shares of WAG fell by 14.66% or $-10.13/share to $58.99. In the past year, the shares have traded as low as $46.75 and as high as $76.39. On average, 5984720 shares of WAG exchange hands on a given day and today's volume is recorded at 72831656.