Australia’s competition regulator has approved a merger between discount pharmacy retailer Chemist Warehouse and Sigma Healthcare to create a pharmaceutical giant. The new merged entity will operate 950 retail stores. Franchisees will still be able to operate under their existing banners including Chemist Warehouse, MyChemist, Amcal, PharmaSave, Guardian and Discount Drug Store pharmacy brands. Sigma is also a wholesaler of pharmaceutical products and the new company will own 16 distribution centres across Australia and New Zealand. But not all industry players are happy. The lobby group representing thousands of pharmacies, the Pharmacy Guild of Australia, says the regulator will need to closely monitor the merger to ensure it doesn’t reduce competition and lead to higher prices. The ACCC slapped conditions on the deal, including establishing an independent auditor, and allowing pharmacies to exit the group, with their data deleted. The ACCC has said it if companies break the conditions set, it will take them to court. The deal still requires the approval of Chemist Warehouse and Sigma’s shareholders and the Federal Court.
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