TERRYWHITE Chemmart CEO John Cullity says the planned merger between Chemist Warehouse and Sigma Healthcare would reduce choice in the market and potentially impact smaller businesses negatively.
"I don't think that's in the interest of consumers generally," Cullity (pictured) said in a statement.
"It is not all about price, or about discounts -- community pharmacy is an important part of the health network for Australia."
Cullity has urged the Australian Competition and Consumer Commission (ACCC) to put the brakes on the planned merger, saying that if approved, an already dominant player in the market would only become stronger.
The Pharmacy Guild of Australia expressed similar concerns if the deal was to proceed (PD 11 Jul).
The merger proposal has polarised the pharmacy sector, with Sigma working to appease concerns by allowing franchisees to exit the group and consider switching to another network if it proceeds.
Chemist Warehouse has taken similar action, saying it is open to selling part of its store network to ease issues raised by the ACCC.
The competition watchdog raised concerns earlier this year about a potential reduction in choice for consumers (PD 13 Jun) if the deal goes ahead, with a final decision expected next month.
"The transaction would create a merged company that is uniquely vertically integrated across multiple levels of the pharmacy supply chain," said ACCC Commissioner Stephen Ridgeway.
"This new business model for the pharmacy sector could raise barriers to rivals expanding or entering, which may lessen competition." ML
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