Sigma’s court-enforceable undertaking tips merger in its favour.
The Australian Competition and Consumer Commission (ACCC) has announced that it will not oppose the merger of Sigma Healthcare Limited (ASX: SIG) and CW Group Holdings Limited after Sigma provided a court-enforceable undertaking.
“The ACCC found that, with the undertaking, the proposed merger is unlikely to substantially lessen competition,” said ACCC Chair Gina Cass-Gottlieb.
“There is and will continue to be effective competition at all levels of the pharmacy supply chain, capable of constraining a combined Sigma Chemist Warehouse.”
Cass-Gottlieb further explained that “the ACCC’s analysis found that the proposed merger is unlikely to substantially lessen competition nationally or locally because other pharmacies and non-pharmacy retailers will continue to compete to the same extent they compete now”.
She noted that consumers would maintain choice, with Sigma’s and Chemist Warehouse’s distinct formats offering either smaller, personalised services or larger, discount-driven stores.
More details in today’s issue of Pharmacy Daily.
