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Competition authorities have approved the merger of American pharmacy chain Walgreens and British pharmaceutical wholesaler Alliance Boots. Walgreens may thus take a 45% stake, equating to $4bn, of Boots.

As part of the merger, Boots boss Stefano Pessina and Dominic Murphy of US investment firm KKR, responsible for all investments in the UK and Ireland, will join the board at Walgreens. In return, four places have been created on the Alliance Boots board for Americans including Walgreens CEO Gregory Wasson.

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