Hutchison Whampoa's retail arm, AS Watson, is bolstering its position as the world's third-largest pharmacy chain by outlets through a partnership with British retail giant Boots Retail International.
The deal with Boots, which is expected to be completed by October, follows the local pharmacy chain's 1.3 billion euro (about HK$9.81 billion) acquisition of Netherlands-based Kruidvat group last week.
Under the agreement with Boots, the British retailer would establish counters in Watsons stores offering a range of products to Hong Kong consumers, sources said. The details of the partnership have not been finalised.
It is believed the deal will be structured according to a similar trial in Taiwan where Boots products were offered in a number of Watsons stores.
The two companies also planned to implement a similar partnership agreement in Thailand next month, sources said.
There are 134 Watson's pharmacies in Hong Kong and this will increase to 141 by the end of the year. Worldwide, AS Watson operates 960 pharmacies, although this number will increase to 2,860 through the acquisition of Kruidvat, which has 1,900 health and beauty stores across Europe.