Competition watchdog to make a call on Sigma, Chemist Warehouse mega-merger in a month
Australia’s competition watchdog has once again delayed making a call on Sigma Healthcare’s $8.8 billion proposed mega-merger with private retailer Chemist Warehouse.
The Australian Competition and Consumer Commission released its preliminary report in June, which raised a raft of red flags over the proposed deal that would see Sigma merge with Chemist Warehouse to create a publicly-listed company.
The final ruling originally due in September was delayed until at least early October. Sigma on Wednesday confirmed the regulator plans to announce its call on October 24.
Sigma said it continued to co-operate closely with the ACCC to address concerns raised in the preliminary report. Among the regulator’s concerns is that the merger would raise barriers to rivals hoping to enter the pharmacy market or extend their footprints.
“We are dependent, really, on the ACCC, either for approval or rejection, and then we’ll take the process from there,” Sigma chief executive Vikesh Ramsunder told investors on Wednesday.
“But as I’ve outlined, once we do get ACCC approval . . . there are several steps to conclude before for that, so timing (is) really subject to the regulators at present.”
Chemist Warehouse’s annual report — released along with Sigma’s half-year results — showed profit before tax hit $574 million in 2024, up 33.7 per cent on the prior corresponding period.
It opened 19 new Australian stores in 2024, and another 16 internationally, taking the total to 637.
For the six months to the end of July, Sigma reported profit of $13.7m, up 303.6 per cent, on revenue of $1.84 billion, up 17.3 per cent.
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