Boots will remain under the ownership of Walgreens Boots Alliance after the US pharmacy company abandoned a sale of Britain’s biggest chemist. Walgreens has been looking to sell Boots and its related No7 Beauty brand since the end of last year, with a formal review of its options beginning in January. However, on Tuesday it pulled the sale, blaming global financial market conditions which meant potential buyers were struggling to borrow enough money. The value of many of the world’s largest companies has slumped during 2022 as investors take fright at the prospect of higher interest rates amid surging inflation. Rising rates also raises the cost of borrowing, making debt-funded takeovers more difficult. Indian billionaire Mukesh Ambani’s Reliance Industries and US private equity investor Apollo Global Management had made a joint £5bn bid for Boots. Interest from the owners of Asda, brothers Mohsin and Zuber Issa, never led to a formal bid, while US firms CVC and Bain Capital also dropped a mooted approach. Walgreens had been reported to be looking for as much as £10bn when it initially put Boots up for sale, as it sought to focus on its US businesses. It is understood that Ornella Barra, Walgreens’ chief operating officer, and her partner Stefan Pessina – the company’s billionaire executive chairman – told staff at Boots’ headquarters in Nottingham that they had received offers close to their valuation earlier this year, before Russia’s invasion of Ukraine prompted a further bout of volatility in global financial markets. In a memo to staff, seen by the Guardian, Barra pledged to “continue investing in the future of these two businesses”. She said: “Our priority remains on doing the right thing for the businesses, our people, our customers, and our patients. Thank you again for your patience and for your ongoing and valuable contributions.” In a statement, Walgreens said it had received “significant interest from prospective buyers”, but there had been “unexpected and dramatic change” in global markets. “As a result of market instability severely impacting financing availability, no third party has been able to make an offer that adequately reflects the high potential value of Boots and No7 Beauty Company.” Walgreens insisted that the pulled sale did not reflect badly on the performance of Boots or No7, saying they were performing strongly and continuing to grow. It said it would invest in the companies, which have “exceeded expectations despite challenging conditions”. However, Rosalind Brewer, Walgreens’ chief executive, signalled that the company would consider any future takeover approaches. It will “stay open to all opportunities to maximise shareholder value”. She added that the company had abandoned the sale because of “rapidly evolving and challenging financial market conditions beyond our control”. “It is an exciting time for these businesses, which are uniquely positioned to continue to capture future opportunities presented by the growing healthcare and beauty markets,” she said.