Expansion trail for drugs giant

The UK group said it had lifted its stake in Hedef Alliance to 60 per cent from 50 per cent and would increase it further over the next two years.

Hedef Alliance's founder, Ethem Sancak, will remain as executive chairman of the business, with an increased personal stake, it added.

Alliance Boots runs wholesale operations in 16 countries and pharmacies in nine.

Hedef Alliance has about one third of the fast-growing Turkish pharmaceuticals market, which is benefiting from an increasing population and an extension of state health insurance.

It also has a controlling 50 per cent stake in Egyptian drugs wholesaler United Company of Pharmacists and an associate interest in Hydrapharm, the largest wholesaler in Algeria.

Alliance Boots was bought in 2007 by private equity firm KKR and executive chairman Stefano Pessina in an 11bn deal.