Chemist Warehouse's merger with Sigma Healthcare creates Australia's largest pharmacy chain, with Melbourne founders Jack Gance and Mario Verrocchi as big winners.

Chemist Warehouse merges with Sigma Healthcare, creating Australia's largest pharmacy chain and wholesalers. BHP appoints Ross McEwan as chairman, replacing Ken MacKenzie. The future of the Australian housing market is uncertain, with an overgrown patch of land in Sydney emblematic of the battle lines. Australia's iron ore exports may be disrupted by Tropical Cyclone Zelia.

The Australian Competition and Consumer Commission (ACCC) has given the green light to the merger of Chemist Warehouse and Sigma Healthcare, creating a dominant player in the pharmacy sector with an estimated value of $8.8 billion [1]. The combined entity will operate over 1,000 retail stores and 16 distribution centers, solidifying their position as the largest pharmacy chain and wholesalers in Australia [1].

The ACCC's approval follows a thorough investigation, addressing concerns about reduced competition. Initially, there were worries about Sigma's role as a major supplier to independent pharmacies, potentially limiting supply options and driving up prices [1]. To alleviate these concerns, Sigma committed to a series of legally binding conditions, ensuring fair competition [1].

Proxy advisory firm Ownership Matters recommends that Sigma Healthcare shareholders vote in favor of the reverse takeover, citing significant shareholder value [2]. The merger is expected to pave the way for a Chemist Warehouse listing on the ASX, marking a new growth phase for the pharmacy giant [1].

The merger's approval comes amid uncertainty in the Australian housing market, with an overgrown patch of land in Sydney symbolizing the ongoing battle lines [3]. Additionally, Tropical Cyclone Zelia poses a threat to Australia's iron ore exports, adding to the country's economic challenges [3].

References:
[1] Forbes Australia. (2023, January 23). Chemist Warehouse's $8.8bn merger with Sigma Healthcare given the green light. https://www.forbes.com.au/news/investing/chemist-warehouses-8-8-billion-merger-given-the-green-light/?sh=6d6c6b
[2] Inside Retail Australia. (2023, January 23). Key advisor backs Chemist Warehouse's $5.8bn Sigma Healthcare takeover. https://insideretail.com.au/top-stories/key-advisor-backs-chemist-warehouse-sigma-healthcare-5-8-billion-deal-2023-01-23
[3] Reuters. (2023, January 23). Cyclone Zelia threatens Australian iron ore exports. https://www.reuters.com/business/environment/cyclone-zelia-threatens-australian-iron-ore-exports-2023-01-23/