Walgreens Boots Alliance Inc shares surged over 7% on Tuesday following a report the drugstore chain could be taken private through a takeover this week.
According to the Wall Street Journal, Sycamore Partners was closing in on a deal to buy Walgreens for between $11.30 and $11.40 a share in cash.
Such an agreement, which would see Walgreens removed from the public market for around $10 billion, could be completed as soon as Thursday, the report said.
Sycamore would likely retain Walgreens’ core US retail operations under the acquisition, and sell or spin off other parts of the company, it added.
Walgreens has grappled with shrinking margins in recent years, alongside an unsuccessful expansion into primary care, with its market capitalisation dropping from over $100 billion in 2015 to under $10 billion come 2025.
Shares were up 7.3% at $11 on Tuesday.