The British chemist chain, Boots, is to announce major expansion plans for the Irish market this morning, centred on the acquisition of the largest Irish chain, Hayes Conyngham Robinson (HCR). HCR has 16 branches in the Republic - including a flagship store in Grafton Street - and has grown significantly in recent years. It is a family company owned by the Shiell family, and run by Mr Michael Shiell.

HCR is understood to have first had discussions with Boots late last year. These discussions broke off, despite an offer from Boots put by industry sources as high as £25 million.

However the talks resumed recently and are now understood to have concluded successfully. The move will form a major part of Boots' Irish plans - which may include further purchases - to be outlined at a press conference this morning. Senior managers in HCR were informed of the acquisition over the weekend and late yesterday staff were told. A briefing for all staff is to be held this evening and Boots is understood to have indicated that there will be no operational changes for two months.

News of the takeover may lead to concerns in the pharmaceutical wholesale sector, where suppliers will be concerned that Boots could move purchasing from Ireland to its existing British suppliers.