ACCC says proposed Chemist Warehouse merger with Sigma Healthcare raises 'competition concerns'

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The Australian Competition and Consumer Commission says a proposed merger between pharmacy retail giant Chemist Warehouse and Sigma Healthcare raises 'competition concerns' in the country's pharmacy sector.

The Australian Competition and Consumer Commission says the proposed merger between Chemist Warehouse and Sigma Healthcare raises "competition concerns" and would be a "major structural change" for the country's pharmacy sector.

The ACCC said the deal would create a "new business model for the pharmacy sector" that "could raise barriers to rivals expanding or entering, which may lessen competition". Chemist Warehouse and Sigma Healthcare entered into a merger deal in December last year that would see the companies become the largest pharmaceutical retailer in the country, with a total value in excess of $8.8 billion.

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