Walgreens Boots Alliance Inc (WBA  ) is reportedly reconsidering plans to part ways with its U.K. drugstore chain, Boots, as discussions around a potential sale or separation resurface, which was previously scrapped approximately 18 months ago.

Walgreens is contemplating strategies to disentangle itself from Boots, with a potential valuation estimated at £7 billion for the chain. Among the possibilities being explored, an initial public offering in London is considered one viable option, Bloomberg reported, citing sources close to the matter.

In its Q3 earnings conference call, the company said Boots would be closing 300 stores in the U.K. and 150 Walgreens branches in the U.S. over the next year as parent company Walgreens Boots Alliance seeks to "optimize" locations. "As you have seen, we are accelerating our portfolio optimization to further simplify the business," the company said earlier.

The potential separation process via an IPO, if initiated, is not expected to commence until next year at the earliest, with ongoing deliberations still in their preliminary phases.

The previous attempt to divest Boots was halted in June 2022, as Walgreens failed to secure the desired valuation amid a turbulent credit market.

As per the report, several bids were considered during the prior divestiture effort, including a joint bid from Reliance Industries Ltd., Apollo Global Management, Inc. (APO  ), and a consortium backed by TDR Capital and Britain's billionaire Issa brothers.

While Walgreens evaluates various options to divest itself from Boots, its strategic focus on North America, which has been expanding healthcare services, remains a core priority.

Price Action: WBA shares are up 0.35% at $23.01 during the premarket session on the last check Wednesday.