ACCC raises red flag on Australian pharmaceutical merger

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Chemist Warehouse News

Sigma Healthcare,Stephen Ridgeway,Pharmacy

The Australian Competition and Consumer Commission has raised concerns about a pharmaceutical company attempting to acquire one of Australia’s largest pharmacy retailers.

Sigma Healthcare Limited has attempted to enter into a merger with pharmacy retailer Chemist Warehouse in a deal estimated to be worth more than $8.8 billion.

Chemist Warehouse will be acquired by Sigma Healthcare under the proposed merger deal. Picture: NCA NewsWire / Brenton Edwards Meanwhile, Chemist Warehouse Group owns and operates over 500 stores in Australia, including My Chemist and My Beauty Spot. The move could disadvantage independent and rival pharmacies who may face unfavourable terms and increased costs compared to Chemist Warehouse.

Sigma has said it expected the proposed merger to come under scrutiny due to the size and complexity of the deal. “The proposed transaction will ensure that Sigma, consistent with its regulatory obligations, can continue to serve franchisee and independent pharmacies alike.”

 

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