‘Competition concerns’ flagged with Sigma’s proposed Chemist Warehouse takeover

The ACCC has outlined a number of “preliminary competition concerns” regarding the proposed takeover of Chemist Warehouse Group by Sigma Healthcare.

Sigma is one of the largest wholesalers of prescription medicines, over the counter and front of store products, while Chemist Warehouse operates stores under its own name, plus MyChemist, Ultra Beauty, My Beauty Spot, and Optometrist Warehouse.

Under the proposed agreement, Sigma will acquire Chemist Warehouse, in exchange for Sigma shares and a $700 million cash consideration, while the combined company will list on the ASX under Chemist Warehouse’s ticker – “in effect a ‘reverse acquisition’ of Sigma by Chemist Warehouse” as the ACCC explains it.