Pharmacy Daily | Sigma-CWH merger date

SIGMA has provided an update on its proposed merger with Chemist Warehouse, confirming that the parties have agreed to extend the end date of their proposed merger to 31 Mar 2025.

The main requirements to be finalised are the approval of certain resolutions in connection with the transaction by Sigma shareholders, the approval of the scheme by Chemist Warehouse shareholders, and court approval.

In an ASX statement, Sigma said it expects the documentation shareholders require to vote on the resolutions of the merger to be published this calendar year, and looks forward to providing shareholders with notice of the Extraordinary General Meeting in respect of the transaction.

The Australian Competition and Consumer Commission (ACCC) announced in Nov (PD 07 Nov) that it would not oppose the proposed $8.8 billion merger between Sigma Healthcare Limited and Chemist Warehouse Group, contingent upon a court-enforceable undertaking provided by Sigma.

The undertaking mandates that Sigma delete the data of pharmacies that switch to another wholesaler or banner group and also continues as a participating wholesaler in the Commonwealth Government's Community Service Obligation for five years.

"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."

Commenting on the announcement, Chemist Warehouse Group CEO Mario Verrocchi said, "We welcome the ACCC's decision."

"Chemist Warehouse has a history of driving innovation and competition, based on a high-volume, low-prices model.

"We believe that the combined group will continue to drive competition within the industry."

However, the mandate has not fully assuaged many pharmacists' concerns about the impact of the merger on their business, and in a submission to the ACCC's competition review, reported by the Australian Financial Review, the Pharmacy Guild labelled efforts by Chemist Warehouse to lessen the impact [of the merger] as "tokenistic". KB