CHEMISTS in Worcester are nervously waiting to see what will happen if the high street retailer Boots merges with rival Alliance UniChem.

In a deal worth £7bn the merger will create one of Europe's largest drugs, beauty and healthcare groups with sales of more than £13bn.

The combined company - to be called Alliance Boots - will own 2,600 stores across Britain in an effort to fend off stiff competition from supermarket giants Tesco and Asda. But pharmacies such as DL Ogle, in St John's, which are supplied by Alliance Unichem, are unsure how they will be affected.

David Ogle, owner of the local pharmacy, said: "Unichem has made its money supplying independent pharmacies like us and I cannot see it making much difference to the way we trade at all, although of course it is early days yet."

Shares in Boots and Alliance UniChem rose sharply after the deal was announced.