Boots drops bid for US drug firm

THE owner of Boots has abandoned plans for a full takeover of American rival Rite Aid following resistance from US regulators.

Instead, Walgreens Boots Alliance, the parent company of Boots UK, will buy 2,186 Rite Aid stores and some distribution centres for £4bn.

Walgreens first announced its plans for Rite Aid in October 2015.

The combination of Walgreens, the largest US drugstore, and Rite Aid would have created a giant with more than 11,000 outlets in the US. But the deal faced resistance from competition regulators and Walgreens will pay Rite Aid a £250m termination fee as a result.