Already a subscriber?The deep irony contained in the Australian Competition and Consumer Commission’s statement of issues on the reverse takeover of Sigma Healthcare by Chemist Warehouse raises concerns about the deal’s impact on competition in the pharmacy sector.
Increased vertical integration, the ACCC argues, is a problem in the pharmacy sector, where existing regulations “generally drive a model of independent retail store ownership”. None of these issues will be a surprise to either the Chemist Warehouse or Sigma camps, which would have been prepared for the ACCC process to extend to the public consultation that will now occur. And both parties have been working with the ACCC on all the issues raised for some time.While the issue of vertical integration is a live one, Sigma and Chemist Warehouse will take comfort from three sources.
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