LEGAL firm Gilbert Tobin, which secured the Australian Competition and Consumer Commission (ACCC) clearance for the merger of Sigma Healthcare and Chemist Warehouse yesterday (PD 07 Oct), has valued the new market powerhouse at over $25 billion.
The ACCC, after a detailed investigation, confirmed it will not oppose the merger, based on Sigma's court-enforceable undertaking (PD 01 Oct).
Despite the ACCC's approval, the Pharmacy Guild of Australia has raised concerns, cautioning that consolidation will reduce wholesaling choices, lead to higher prices for patients.
"Reduced competition ultimately leads to higher prices for patients and lower service standards," a Guild spokesperson said.
"It is disappointing the ACCC accepted limited behavioural undertakings and did not explore structural undertakings."
"Market consolidation in health services like oncology, general practice, pathology and now community pharmacy, is not in the best interests of patients.
"It leads to non-competitive duopolies, an unequal distribution of doctors, and a reduction in smaller businesses better equipped to provide local and personalised health services to their communities," he said.
Gilbert Tobin's Competition, Consumer Market Regulation team, led by partners Elizabeth Avery and Liana Witt, played a critical role in navigating the merger's complex regulatory hurdles.
"The case demonstrated the importance of rigorous analysis of the evidence in light of a complex regulatory landscape." JG
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