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.com
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    11 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
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      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