Australia's Sigma Healthcare jumps after dropping pursuit of Boots

By Roshan Thomas and Rajasik Mukherjee

June 15 (Reuters) - Australia's Sigma Healthcare has dropped its pursuit of UK pharmacy chain Boots, saying its primary focus is the local market, sending its shares soaring by more than 8% on Monday.

The withdrawal came a couple of days after Sigma said it had been in early talks for a potential acquisition of Boots, adding that it continuously reviews opportunities that could create shareholder value.

The Australian pharmaceutical wholesaler and retailer said on Monday a deal with Boots would not meet its strategic and capital investment objectives.

Shares of Sigma jumped as much as 8.3% and were on track for their best day since late August 2025 if current gains held, while the broader benchmark stock index was up 1.4%, as of 0420 GMT.

"Investors appear to have breathed a sigh of relief," said Marc Jocum, a senior product and investment strategist at Global X ETFs.

"Today's 8% rally suggests shareholders would rather see management focus on executing the opportunities already in front of them than pursue another transformational deal of that scale."

Sigma didn't disclose any financial terms, but a Financial Times report said a potential deal could value the British health and beauty retailer at about $10 billion.

"Sigma has many opportunities for growth and is confident in its established growth strategy, with a primary focus on the Australian market," the company said in a statement, adding that overseas growth remains one of its key growth pillars.

A deal would have expanded Sigma's footprint in the UK market following its acquisition of a controlling stake in Greenlight Healthcare last month.

Sigma said it had considered the opportunity to deepen its push in the region through Boots' established brand and extensive footprint.

Last year, the company finalised a merger with Chemist Warehouse to create a A$30 billion pharmacy and retail giant.

The value of the merger was A$8.8 billion when the deal was announced in December 2023, but Sigma shares have increased more than threefold in value since then.

(Reporting by Roshan Thomas in Bengaluru; Editing by Jacqueline Wong and Subhranshu Sahu)