Overview of Sigma's Proposed Acquisition of Chemist Warehouse

Sigma Healthcare Limited (ASX:SIG) is seeking feedback on a proposed court-enforceable undertaking offered in relation to its proposed acquisition of Chemist Warehouse Group Holdings. The Australian Competition & Consumer Commission (ACCC) is currently investigating the impact of the proposed acquisition.

ACCC Chair's Statement on Sigma's Proposed Undertaking

We are now seeking feedback from stakeholders on whether the draft undertaking offered by Sigma may be capable of addressing the competition concerns arising from its proposed acquisition of Chemist Warehouse. While the ACCC is publicly consulting on this undertaking, this should not be interpreted to mean that this or any other form of undertaking will ultimately be accepted by the ACCC.

Summary of Sigma's Proposed Acquisition and Outlook

Sigma Healthcare Limited (ASX:SIG) is consulting on a proposed court-enforceable undertaking in response to preliminary competition concerns with its proposed acquisition of Chemist Warehouse Group Holdings. The undertaking includes provisions to address potential harm to pharmacies, data access concerns, and commitment to remain a participating pharmaceutical wholesaler under the Commonwealth Government's Community Service Obligation (CSO) arrangements for at least five years. The ACCC is inviting submissions on the proposed undertaking and continues to investigate the impact of the proposed acquisition. Upon completion, Chemist Warehouse shareholders will hold 85.75% of the ASX listed merged entity while Sigma shareholders will hold 14.25%. The outlook includes ongoing scrutiny and feedback collection from stakeholders regarding the proposed undertaking and its potential impact on competition in the pharmaceutical industry.