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Yet the 'merger of equals' line deserves more than just a knowing shrug. However strong the Boots brand and its 156-year heritage, it is the Alliance Unichem business that has outperformed both the market and its one-time rival over recent years.

In July, Alliance Unichem unveiled another set of record half-year results, with both revenue and operating profits up by 3.1%. Compare that with Boots' full-year results for 2005, which at best could be interpreted as an end to the really bad news. After a disastrous final quarter to March, where like-for-like sales at the core chemist chain fell by 0.9%, the full-year report was presented as something of a turning point for the business. Even with operating profits down by 8.7%, there was a note of truth to the spin - Christmas sales were up and sales for the year crept up by 2.7%.

There is a sense that, having stemmed the flow of its own blood, Boots may well have secured its long-term financial health through this deal. For a start, and crucially for its UK operation, the merger gives Boots the scale to hit back at the supermarkets that continue to encroach on its territory. The promise is that Alliance Boots will have the economies to reduce prices, though whether it can match the muscle of the multiples remains to be seen.

Alliance Boots will become the biggest retail pharmacy chain in continental Europe, with combined sales of more than £13bn. Boots' success at overseas expansion so far has been geographically limited to Asia and, at a stroke, the deal gives it a vastly expanded retail portfolio from which to drive sales of its strong brands such as No7 and Soltan.

It is the potential for the Boots brand that is the most interesting aspect of the deal. At home, the merger takes the number of stores from 1400 to 2600. A massive increase in presence to be sure, but, more importantly, the changed profile of the portfolio allows Boots to redefine what has become a confusing proposition. No fewer than 1500 of the stores will be community pharmacies, providing Boots with the opportunity to reinforce its core chemist credentials.

This is a significant opportunity for Boots to secure the specialist pharmacy territory against the advances of the supermarkets, and at the same time review its own generalist approach to the 800 high-street 'health and beauty' stores which presently sell everything from soap dishes to sandwiches.

It is an exciting prospect for a business whose brand has been in the doldrums for so long. The danger must be that Boots will be tempted to run before it has stopped limping.

Wisely, little has been given away about where and when the Boots brand may make its presence felt on European high streets. As Alliance knows, and hopefully will advise, the brand is strong in its various territories. As its prospects improve, Boots will be wise to think back to the merger of equals it has promised.