Walgreens and Alliance Boots complete Step 2 of merger

USA-headquartered Walgreen and Europe’s Alliance Boots GmbH on January 1 completed Step 2 of their strategic partnership to form Walgreens Boots Alliance (Nasdaq: WBA), finalizing the two-step merger launched in 2012 to create the world’s first global pharmacy-led, health and wellbeing enterprise.

Walgreens and Alliance Boots announced their two-step strategic transaction in June 2012. They completed Step 1 in August 2012, when Walgreens invested around $4.0 billion in cash and 83.4 million shares of its common stock in exchange for a 45% equity ownership stake in Alliance Boots. With today’s announcement of the completion of Step 2, Walgreens has acquired the remaining 55% of Alliance Boots in exchange for about $5.3 billion in cash and 144.3 million shares of stock.

Under a reorganization merger agreement approved last week by Walgreens shareholders, Walgreens is now a wholly-owned subsidiary of Walgreens Boots Alliance. Existing shares of Walgreens common stock were converted automatically into shares of Walgreens Boots Alliance common stock on a one-for-one basis. Walgreens Boots Alliance common stock will trade on the Nasdaq stock exchange under the symbol WBA.