A merger between Chemist Warehouse and Sigma Healthcare is unlikely to materially reduce competition in the pharmaceutical industry, a watchdog has concluded.
The competition watchdog has approved the $8.8 billion merger of pharmacy companies Chemist Warehouse and Sigma Health after deciding it will not hamper consumer choice.
Chemist Warehouse, a pharmacy franchisor, is now free to join forces with pharmaceutical wholesaler Sigma Healthcare, following the Australian Competition and Consumer Commission (ACCC) ruling.
Sigma is also a franchisor of pharmacies under names such as Amcal+ and Discount Drug Store.
“The ACCC’s analysis found that the proposed merger is unlikely to materially reduce competition at a national or local level, as other pharmacies and non-pharmacy retailers will continue to compete to the same extent as they do now,” said chair Gina Cass-Gottlieb .
Consumers appreciated several aspects of the company’s banners, she added.
“Importantly, consumers will continue to have a choice between smaller stores that provide personalized services to consumers and the Chemist Warehouse offering, which focuses on larger discount stores and front-of-store offerings,” she said.
The ACCC has approved the $8.8 billion merger of pharmacy companies Chemist Warehouse (pictured) and pharmaceutical wholesaler Sigma Health
The consequences of the proposed merger for the supply of pharmacy products, including generic medicines, were also examined.
The ACCC concluded that there were multiple channels available for suppliers and manufacturers of these products to reach consumers.
The Pharmacy Guild, an industry lobby group, opposed the merger on competitive grounds.