Walgreen Boots Alliance Inc. (NYSE:WAG) Is Ready To Conquer the Global Market

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By Lisa Bradley on January 2, 2015 Company

Walgreen Company (NYSE:WAG) sealed a deal with Alliance Boots on December 31, 2014. The deal was first of its kinds when it came to the industry of retail pharmacy. The company plans to expand itself globally in the coming years.

The new company has been given the name of Walgreens Boots Alliance Inc., and it is listed on Nasdaq stock exchange with the symbol WBA. The deal between Walgreen Company and Alliance Boots started back in 2012, and during the last week of December 2014, the stock holders of Walgreen approved the acquisition of Alliance boots. Walgreen bought the remaining 55 percent of the stocks of Alliance Boots, thus acquiring the company completely. Alliance boots was a European Drug store whereas Walgreen was an American pharmaceutical company. Market analysts are of the opinion that the deal will prove beneficial for the new company that has been formed after this acquisition.

Walgreen Company (NYSE:WAG) started its functions back in 1901 in the region of Chicago. The company started as a small drugstore. And now, it has a huge retail network in Latin America, United States, Europe, and Asia. According to the estimates, the new company will have around 12,800 stores all across the globe. The company will be functioning in more than 25 regions with 370,000 employees.

Walgreen Company was the biggest pharmacy retail chain in the region of United States, according to a report by CVS Health. The new company will be providing drugs to the customers from more than 340 distribution channels. Moreover, the total pharmacies and health care entities that it will cover come to a total of 180,000.

The management of Walgreens Boots Alliance Inc. (NASDAQ:WBA) said that the company looks forward to extend its operations, and to become one fo its kinds. The global growth will not only produce sustainable profits for the company but it will also be beneficial for the stockholders and the local markets. The company plans on improving the experience of each of the involving parties, from patients and consumers to distribution channels and suppliers. The acting chief executive of the new company, Stefano Pessina, who is 73 years old, filled the vacant seat when the chief executive of the Walgreen Company (NASDAQ:WAG) retired. Now that the new company has been formed, the company is looking for a permanent CEO.

According to the management of the company, the two iconic brands are merged together. Both of them have geographic footprints, which will prove useful for the new company.

Coming to the stock prices of Walgreen Company (NASDAQ:WAG) prior to the formation of the new company, Walgreen, on the last trading day of December 31, 2014, started its stocks at a price of $76.48 and closed at a price of $76.05, after hitting the highest price of $76.61. The company had a market capitalization of $72.87 billion with a P/E (price to earnings) ratio of 35.93. As far as the dividend yield of the company was concerned, the figures stood at 1.77 percent.