The Australian pharmaceutical company Sigma Healthcare Ltd. completed the acquisition of 100% of the shares of CW Group Holdings Limited, the parent company Chemist Warehouse. This is reported in a Sigma press release.
As a result of the transaction, Chemist Warehouse became a wholly owned subsidiary of Sigma. The cost of the combined company, which will serve 1,000 Sigma pharmacies and 600 Chemist Warehouse stores, will amount to 8.8 billion Australian dollars ($5.8 billion).
The agreement between the parties to the transaction worth 700 million Australian dollars was signed in December 2023. Upon completion of the transaction, Chemist Warehouse will be listed on the stock exchange.
Earlier, the Australian Competition and Consumer Commission (ACCC) approved the merger of pharmaceutical companies Sigma Healthcare Ltd. and Chemist Warehouse.
The ACCC made a positive decision after approving the remedies proposed by the parties to the deal to obtain approval from the regulator, which had previously expressed concerns about possible problems with competition in the pharmacy retail industry as a result of the merger.
According to the agreement, Sigma should not apply contractual restrictions or impose expensive fees for pharmacies that wish to withdraw from the group, while ensuring the protection of their data.
Chemist Warehouse Group is an Australian company that manages a network of retail pharmacies locally and internationally. The company is one of Australia's largest pharmacy retailers, offering discounted prices for pharmaceutical products. The headquarters is located in Melbourne (Australia).
Sigma is an Australian pharmaceutical company listed on the ASX stock exchange. The company carries out pharmacy operations in the retail and wholesale trade sector. Sigma operates 1,200 branded and independent pharmacies under the brands Amcal, Discount Drug Stores and Guardian Pharmacy. The headquarters is located in Clayton, Victoria, Australia.
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