[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Monday, 29 January 2007, 07:45 GMT
Chinese joint venture for Boots
Boots store
Boots needs Chinese government approval to seal the deal
Pharmacy group Alliance Boots is to form a joint venture with Guangzhou Pharmaceutical (GP), the third largest pharmaceutical wholesaler in China.

The joint venture will run 29 retail pharmacies in China, the most permitted under Chinese rules for such a deal.

GP is the leading wholesaler in its home province of Guangdong where it has a market share of about 16%. It also has a 3% share of the national market.

Alliance Boots chief executive Richard Baker said it was an exciting deal.

"It underlies our commitment to be a major international player in pharmacy-led health and beauty," he said.

"The Chinese market has good growth potential and this move demonstrates our belief in the ability of the group to drive growth through developing opportunities in new markets."

'Experienced partner'

Boots, whose retail arm is in Nottingham, said the joint venture would bring together strong local management and "our extensive experience in running pharmaceutical wholesaling businesses".

Yang Rongming, chairman of the joint venture partner, said: "We are delighted to be forming this joint venture with such an experienced international partner with proven excellence in the operation, acquisition and integration of pharmaceutical distribution businesses."

The formation of the joint venture is conditional upon receiving approval from Guangzhou Pharmaceutical shareholders, and various government and regulatory approvals.

It is expected to be completed in the second half of 2007 and will expand Alliance Boots' wholesale presence to 15 countries.




SEE ALSO
'Good' start for Alliance Boots
14 Nov 06 |  Business
Boots sales shine in tough market
30 Mar 06 |  Business
Boots set to cut up to 2,250 jobs
14 Mar 06 |  Business
Boots merger deal gets go-ahead
07 Feb 06 |  Business
Boots announces 7bn merger deal
03 Oct 05 |  Business

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites



FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

PRODUCTS & SERVICES

Americas Africa Europe Middle East South Asia Asia Pacific