Chemist Warehouse may be a discount pharmacy, but it's agreed to a merger worth $8.8 billion
www.abc.net.au
After months of speculation, the retail pharmacy juggernaut that is Chemist Warehouse will merge with Sigma Healthcare to create the biggest pharmacy company in Australia. Here's how the deal came to fruition, and what it means for their hundreds of stores.

Chemist Warehouse has struck a deal with Sigma Healthcare to create the biggest pharmacy company in Australia […] a company with a value in excess of $8.8 billion.

It also makes Sigma Healthcare a substantially bigger player in the market. Right now, Sigma has a market capitalisation of $810 million — but the deal grows its value by almost 11 times.

But it’s not only the monetary value of the company that makes this such a big deal — it would also make it one of the top 100 companies listed on the ASX.

The merger will create three tiers of pharmacy that won’t compete with each other: the big box discount (Chemist Warehouse), the full service (Amcal, My Chemist) and the discount (Discount Drug Stores).

Notes on edited title

My title options were:

  • Chemist Warehouse may be a discount pharmacy, but it’s agreed to a merger worth $8.8 billion
  • What does the Chemist Warehouse merger with Sigma Healthcare mean for the pharmacy giant?

So I edited it for a more descriptive one lol.

  • DeltaTangoLima@reddrefuge.comEnglish
    13·
    7 months ago

    Honestly, I’ll be a bit surprised if the ACCC lets this one through to the keeper - this could mean a dramatic reduction in competition. But, then again, it’s not been Allan Fels’ ACCC for a long time. Their teeth are nowhere near as sharp any more.

    • ephemeral_gibbon@aussie.zone
      3·
      7 months ago

      They shouldn’t, but I wouldn’t be surprised if they did. They were going to let through the origin buyout by brookfields