You could almost hear the squeals of delight from the thousands of independently owned pharmacies on Thursday as the competition regulator delivered an amber light to theBut investors hungry for a new healthcare group to be born from the union will be sorely disappointed. This $8.
It’s tricky for the competition regulator, as it well understands that the rise of the corporate pharmacy and the scale and efficiency that this has created has brought discounts for consumers, many of whom are avid fans of these big-ish box retailers. Putting aside the strength of the arguments from the parties and the regulator, the facts are that an ACCC amber light more often turns to red than to green.
The particular issues on the ACCC’s laundry list include that the deal may disadvantage the pharmacies that Sigma currently supplies and thereby reduce competition in pharmacy retailing. For its part, Sigma acknowledged on Thursday that competition approval was never going to be a walk in the park, but said it would press on.