Walgreens Boots Alliance is in early talks over separating its UK-based Boots drugstore chain, including the possibility of an initial public offering in London, Bloomberg News reported on Tuesday.

The drugstore chain could be valued at about US$8.78 billion in any deal, the report said, citing people familiar with the matter.

Walgreens declined to comment to a Reuters request.

The company in June last year scrapped its plans to sell the UK high street pharmacy chain, saying no third party was able to make an adequate offer due to the turmoil in global financial markets.

It started a strategic review primarily focused on the Boots business in January last year, as it renewed its focus on domestic healthcare.

The company could also opt to invite fresh offers for Boots, the report said, adding deliberations were still at a preliminary stage and there was no certainty they will lead to a transaction.

The Boots business has 2,200 stores across the UK which includes pharmacies, health and beauty stores, according to its website.

Shares of Walgreens rose 1.85 per cent in afternoon trading.

The US pharmacy chain operator tapped Tim Wentworth as its CEO in October, pinning hopes on the healthcare industry veteran as Walgreens grapples with sharply lower sales from Covid vaccinations and testing, along with decreased spending by inflation-weary consumers.

• Reporting by Sriparna Roy in Bengaluru; Editing by Krishna Chandra Eluri and Maju Samuel, of Reuters.