| UK drug chain Boots plans to enter China |
SHANGHAI, Jan. 30 -- Alliance Boots Plc, owner of the United Kingdom's largest drugstore chain, plans to enter the Chinese market through a joint venture with the country's third-largest pharmaceutical wholesaler, it said in a statement yesterday.
The 50-50 percent joint venture with Guangzhou Pharmaceuticals Corp will operate 29 retail pharmacies, the maximum allowed by the current regulations in China.
Though the joint venture still awaits government and shareholder approvals, Alliance Boots expected its formation to be completed in the second half this year to expand its wholesale presence to 15 countries.
"This is an exciting deal for Alliance Boots and underlies our commitment to be a major international player in pharmacy-led health and beauty," Richard Baker, Alliance Boots chief executive, said in the statement.
"The Chinese market has good growth potential."
The investment in Guangzhou Pharmaceuticals will be made through a United Kingdom subsidiary, which will acquire the 50 percent interest for a total consideration of around 38 million British pounds (US$74 million), according to the statement.
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