The surge in price of ASX listed share price is unwarranted
The Australian Competition and Consumer Commission has approved Sigma Healthcare’s SIG proposed acquisition of Chemist Warehouse, or CW, largely based on Sigma’s proposed remedies. Despite the ACCC delaying its decision twice, opposition from pharmacists and major bodies including the Pharmacy Guild and Ebos, and admitting the acquisition is a major structural change for the pharmacy market, it concluded the proposed remedies would assuage the initial competition concerns raised in June 2024.
We are surprised, given Sigma’s remedies didn’t address the significant structural advantages it would gain. Given significantly superior scale and likely efficiency gains in its supply chain, we think it allows the merged group to…
