Wesfarmers Health notes today’s decision by the ACCC that it will not oppose the Chemist Warehouse / Sigma merger.
The Chemist Warehouse / Sigma merger represents a different operating model for retail pharmacy in Australia.
Through complex ownership structures and transactions, Chemist Warehouse has been able to navigate certain key aspects of pharmacy regulation to enable a level of corporatisation in the sector, which will only increase as a result of the merger.
The new, merged entity will have retail pharmacy sales which are three times those of its closest competitor. It is already a very substantial participant in the industry and over time, we expect that the merger is likely to bring change to the community pharmacy sector.
We know that community pharmacies are an important source of advice and healthcare for Australian patients.
API and Priceline Pharmacy remain committed to supporting community pharmacy and franchise partners to innovate and succeed in this different environment, and to make healthcare more accessible and affordable, for all Australians.
Priceline Pharmacy will continue to enhance its market-leading retail offer in support of its franchisees, helping them evolve and strengthen their businesses.