Scottish Widows Windfalls and Wal-Mart's Boots Takeover Bid

Over 1.6 million Scottish Widows members are awaiting large windfalls from the company's recent takeover by Lloyds TSB, with checks of up to £10,000 expected to arrive over the next two weeks. Meanwhile, Wal-Mart has reportedly set its sights on a £6 billion takeover of high street chemist Boots, aiming to expand its UK retail presence.

Key Takeaways:

• Over 1.6 million Scottish Widows members will receive windfalls averaging £6,000, with over 100,000 qualifying for at least £10,000.
• The payments to members are higher than originally calculated, due to an increase in Scottish Widows' value to £7.3 billion from initial estimates of £6.7 billion.
• Lloyds TSB will pay £5.8 billion of the £6.7 billion takeover consideration, completing the acquisition in March.
• Wal-Mart is eyeing a £6 billion takeover of high street chemist Boots, with a focus on gaining additional retail space in the UK.
• A Wal-Mart takeover would give the company control of 1,400 chemist stores, 300 opticians, and 300 Halfords outlets.
• Wal-Mart has already expanded its UK presence through the acquisition of supermarket chain Asda and plans to open up to 10 new stores, including two in 2000.

Statistics:

• Over 1.6 million Scottish Widows members are awaiting windfalls averaging £6,000 (Source: Scottish Widows)
• Over 100,000 Scottish Widows members will receive at least £10,000 (Source: Scottish Widows)
• Scottish Widows' value has increased to £7.3 billion from initial estimates of £6.7 billion (Source: Lloyds TSB)
• Lloyds TSB will contribute £5.8 billion to the £6.7 billion takeover consideration (Source: Lloyds TSB)
• Wal-Mart has already opened 240 Asda stores in the UK since its acquisition of the chain (Source: Wal-Mart)
• Boots shares have dropped to between 457p and 636p after peaking at over £10 in January 1999 (Source: Financial Times)

Sources:

• Scottish Widows
• Lloyds TSB
• Wal-Mart
• The Telegraph
• Financial Times