Boots owner Walgreens hinted it might try to re-float the chemist chain after attempts to sell the business fell through.
In a statement last night, Walgreens (WBA) confirmed that it would retain ownership of Boots after ending an auction process that had lasted for several months.
"WBA has been encouraged by productive discussions held with a range of parties, receiving significant interest from prospective buyers.
"However, since launching the process, the global financial markets have suffered unexpected and dramatic change.
"As a result of market instability severely impacting financing availability, no third party has been able to make an offer that adequately reflects the high potential value of Boots and No7 Beauty Company.
"Consequently, WBA has decided that it is in the best interests of shareholders to keep focusing on the further growth and profitability of the two businesses."
Doubts about the sale had surfaced some weeks ago with only one confirmed bidder, a consortium of Apollo Global Management (NYSE:APO) and Reliance Industries but even this pairing was said to be struggling to raise funds to meet the £5.5bn price tag.
Royal Bank of Canada (TSX:RY), Credit Suisse, Santander and Bank of America had been brought in to arrange the finance for the deal but the spectre of rising interest rates and a global recession had spooked potential lenders, according to reports.
Walgreens was said to be prepared to accept a minority stake to get the deal done, though most of the finance would have been debt through a heavily leveraged deal.
The US group merged with Boots in 2014 in a deal worth £9bn.