Pressure from investors to lower company taxes might force pharmacy giant Walgreens to head across international waters.
The rare move would allow the retailer to obtain the rest of the shares it doesn't already possess as part of an agreement with multi-national health and beauty group AllianceBoots, according to Marketwatch. The arrangement, announced in June 2012, allows Walgreens to acquire the remaining 55 percent of shares before 2016. This deal came short6ly after the retailer previously expended $6.7 billion to buy 45 percent of the Switzerland-based company the same year.
"It is much more than just a personnel move," Greg Wasson, Walgreens chief executive officer, told Forbes. "It is our continuing journey of putting these organizations together."
Burden from investors has also forced Walgreens to decrease its tax bill by moving, so the pharmacy company can obtain lower corporate tax rates and keep revenue overseas from U.S. tax officials through inversion - a task Walgreen's CEO Greg Wasson originally claims he had no intention to pursue in a March 25, 2014 call.
"Just to reiterate, as I said on the last call, we have no plans to do an inversion," Wasson stated at the time. "We're looking at all and everything. The executive also mentioned he is analyzing the company's current tax state and determining what the structure could do as far as our effective tax rate."
Walgreens saw its profit increase 16 percent during the fiscal year, which ended May 31. Revenue also increased 5.9 percent to $19.4 billion. More expansive transactions and improved numbers at in-store pharmacies helped sales, not including those from just-opened or closed locations.
The retailer and AllianceBoots intend to complete their merger by the beginning of 2015, according to Forbes
