Sigma Healthcare, the Australian company behind Chemist Warehouse, has confirmed it is exploring a potential takeover of British pharmacy chain Boots in what could become one of the largest overseas acquisitions by an Australian retail healthcare business.

The ASX-listed company revealed it had entered preliminary discussions regarding the sale process for Boots, a historic UK retailer estimated to be worth approximately $14 billion (A$14.3 billion). However, Sigma stressed that there is currently no certainty that a transaction will proceed.

The potential acquisition represents a bold step in Sigma's international growth strategy following its merger with Chemist Warehouse, which created one of Australia's largest pharmacy and healthcare retail groups. The combined business now operates hundreds of stores across Australia and has increasingly focused on expanding its global footprint.

Boots is one of Britain's most recognisable retail brands, having operated for more than 175 years. The company runs approximately 1,800 stores throughout the United Kingdom and Ireland and employs more than 50,000 people. Boots is currently owned by private equity firm Sycamore Partners, which acquired the business as part of its takeover of Walgreens Boots Alliance.

Sigma said it continually reviews opportunities that could enhance shareholder value and confirmed its participation in the early stages of discussions relating to the potential sale.

The announcement came shortly after Sigma strengthened its presence in the UK market through a joint venture with Greenlight Healthcare. The agreement, finalised earlier this year, involved acquiring a majority stake in several British pharmacies as part of plans to introduce the Chemist Warehouse brand to the UK.

Industry analysts believe acquiring Boots would dramatically accelerate Sigma's expansion ambitions by providing immediate access to an extensive pharmacy network and an established customer base across Britain.

However, the proposed deal has also raised concerns among investors. Following the announcement, Sigma Healthcare shares fell sharply as markets assessed the financial implications and execution risks associated with such a significant overseas acquisition.

Reports suggest Sigma is not the only party interested in Boots, with Canadian retail groups also linked to the sale process. Competition from rival bidders could influence both the timing and final value of any potential agreement.

If successful, the acquisition would represent a landmark moment for Australian retail, positioning Sigma and Chemist Warehouse among the world's major pharmacy operators. It would also mark another chapter in Chemist Warehouse's remarkable growth story, evolving from a discount pharmacy chain founded in Melbourne into an international healthcare retail powerhouse.

For now, Sigma has emphasised that discussions remain preliminary, and shareholders have been advised that there is no guarantee a deal will eventuate.

The coming weeks are expected to provide greater clarity on whether Australia's pharmacy giant can secure one of the United Kingdom's most iconic retail brands.