Nation & World News

Walgreens Drops Plan To Move Headquarters — And Profits — Overseas

By Alan Greenblatt on August 6th, 2014

Walgreens Co. will complete its merger with Alliance Boots, a British pharmacy, but it will not move its headquarters overseas to reduce its U.S. tax bill.

Walgreens will pay $15 billion, including $5 billion in cash, to purchase the remaining 55 percent of Alliance Boots. The two companies began merging in 2012.

Walgreens had flirted with the idea of moving its headquarters from Chicago to the United Kingdom to avoid paying corporate taxes in the U.S.

That drew attention from policymakers who are concerned about profits made in America being taxed overseas, if at all.

On Tuesday, Treasury Secretary Jack Lew told The New York Times that the Obama administration was exploring ways of cracking down on the process, known as inversion, without legislation from Congress.

Such an inversion would not have flown under the terms of Walgreens’ deal with the British retailer. Walgreens decided to drop the idea.

“The company concluded it was not in the best, long-term interest of our shareholders to attempt to re-domicile outside the U.S.,” Walgreens CEO Greg Wasson said in a statement.

Investors seemed to disagree. The company’s share price dropped about 15 percent on Wednesday.

Copyright 2014 NPR. To see more, visit http://www.npr.org/.

This entry was posted in News from NPR. Bookmark the permalink.

Comments are closed.

 

More Stories in News from NPR

Amanda Knox prepares to leave the set following a television interview on Jan. 31, 2014.

Italy’s Highest Court Overturns Amanda Knox Conviction

The decision puts an end to a story that began in 2009 when Knox was found guilty of murdering 21-year-old Meredith Kirchner two years earlier.


Thai Prime Minister Gen. Prayuth Chan-ocha attending the East Asia summit plenary session at Myanmar International Convention Center in Naypyitaw, Myanmar, in November.

Thai Ruler Says He’s Prepared To End Martial Law

Prime Minister Gen. Prayuth Chan-ocha, who seized power last May, says he will lift martial law and replace it with a constitutional provision that gives him the very same powers.


Israeli Prime Minister Benjamin Netanyahu speaks to supporters following the country's March 17 election. After a bruising campaign in which he faced considerable criticism, Netanyahu has taken a number of steps to try to ease tensions.

After A Tough Election, Israel’s Netanyahu Looks To Ease Tensions

The Israeli leader ruffled feathers during the bruising campaign. Since then, he has sought to make amends. In the latest move, Israel is handing over money it had withheld from the Palestinians.


Carlos Varela, a Cuban protest singer, poses for a picture at the bar of the historic Hotel Nacional in Havana.

LISTEN: A Cuban Protest Singer On The State Of U.S.-Cuba Relations

For decades, Carlos Varela has doled out incisive criticism of the Cuban government. On our recent visit to Havana, he sang a song he says reflects the mood of the country at this historic moment.


Writers lowered the boom on the broom — metaphorically, of course.

App That Aims To Make Books ‘Squeaky Clean’ Draws Ire From Edited Writers

Clean Reader — an app designed to find, block and replace profanity in books — has drawn considerable criticism from authors. This week, makers of the app announced they would no longer sell e-books.


Thank you for your support

WUFT depends on the support of our community — people like you — to help us continue to provide quality programming to North Central Florida.
Become a Sustainer
I want to support FM 89.1/NPR
I want to support Florida's 5/PBS
Donate a Vehicle
Underwriting Payments