Should Warren Buffett buy Walgreens?
Billionaire Warren Buffett is sitting on plenty of cash and has been wanting to make a major acquisition for some time now.
Could Walgreen's be on his radar?
That's a question raised by Barron's following a Reuters report that the drugstore chain has explored going private.
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Walgreens Boots Alliance has a market value of $55 billion, which would make it the largest leveraged buyout ever.
Ticker | Security | Last | Change | Change % |
---|---|---|---|---|
WBA | WALGREENS BOOTS ALLIANCE INC. | 11.82 | +0.31 | +2.69% |
At the end of the third quarter, Buffett's Berkshire Hathaway had a cash balance of $128 billion.
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Warren Buffett, Chairman and CEO of Berkshire Hathaway, smiles as he plays bridge following the annual Berkshire Hathaway shareholders meeting in Omaha, Neb., Sunday, May 5, 2019. (AP Photo/Nati Harnik) (AP Photo/Nati Harnik)
Walgreens is Buffett's kind of company. It's an easy-to-understand business that has an inexpensive valuation, according to Barron's.
What could an offer look like? Barron's says Berkshire could offer $75 to $80 a share or about $70 billion, in an all cash-deal or some mix of cash and Berkshire stock.
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Berkshire had no immediate comment to Barron's.