this post was submitted on 11 Dec 2023
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Chemist Warehouse merging with Sigma Healthcare to become $8.8 billion ASX-listed company (www.abc.net.au)
submitted 11 months ago* (last edited 11 months ago) by [email protected] to c/[email protected]
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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 titleMy 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.

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[–] [email protected] 13 points 11 months ago (1 children)

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.

[–] [email protected] 3 points 11 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

[–] [email protected] 5 points 11 months ago

Instead of competing with your competitors you buy your competitors.

:(