Walgreens Co. (NASDAQ:WAG) will not make job cuts in Alliance Boots after Takeover

John Boot is the founder of Alliance Boots and the company was named after him. He started business in 1849 at Goose Gate in Nottingham. The initial business was herbalist shop, which soon became very popular and resulted in business expansion. In 1885, John Boot opened up a factory in Nottingham. The company served its country in World War I and was a supplier of anti-gas cream and vermin powder to the government. The company continued to expand and gained massive popularity. In the 20^th century, the company discovered ibuprofen. In the same century the company launched its range of skincare products.

Walgreens Co. (NASDAQ:WAG) is an America-based pharmaceutical retailer. They bought 45% stake in Alliance Boots, a European pharmaceutical chain, in 2012. Walgreens Co. (NASDAQ:WAG) is now planning to take over the rest of 55% stake of Alliance Boots. The announcement about this deal was made on Wednesday. The deal will be worth 9 billion in Euros or $15 billion. As a part of the deal, the payment will be made in the form of cash and shares. The cash payment will amount to $5.3 billion and the share volume will be 144.3 million shares.

Alliance Boots reassures that after the complete take over by Walgreens Co. (NASDAQ:WAG), the combined company will not entertain any U.K. job cuts. Walgreens Co. (NASDAQ:WAG) has announced that over the coming three years, it will cut about $1 billion. However, David Johnson of USDAW said that he was informed that no jobs will be eliminated in Alliance Boots after takeover. Mr. Johnson understands that these cost savings will then come from the operations in U.S. if the jobs in U.K. will remain. Alliance Boots is a good and efficient company and it was already difficult to determine that where the cuts should be made in operations.

Alliance Boots will soon be under complete ownership of Walgreens Co. (NASDAQ:WAG). Alliance Boots, which is based in Nottingham, said that Nottingham holds a significant position in the heritage of the company and it will also be an important hub for business in future. A spokesman said that Alliance Boots and Walgreens Co. (NASDAQ:WAG) are complementary in terms of geography. So it is not likely that any cuts will be made in either of the two operations. Walgreens Co. (NASDAQ:WAG) said that it will keep the headquarters of Alliance Boots in Nottingham and insisted that no job cuts will be made in operations in U.K.

Walgreens Co. (NASDAQ:WAG) has also ensured that contrary to some rumors and even anticipations, they will not turn this deal into an inversion. This means that while Alliance Boots continues to enjoy its hometown as its headquarters, Walgreens Co. (NASDAQ:WAG) will do the same too. The combined company will span about ten countries and it will have more than 11,000 stores in total. It has set its aims for the fiscal 2016 as well – the combined company will generate revenue of $126-130 billion. The name of the combined company will be Walgreen Boots Alliance Inc.