Australia's Sigma falls on regulatory concerns over Chemist Warehouse merger
13/06/2024 06:31
(Updates share moves, adds Citi comments)
** Shares of Sigma Healthcare SIG.AX fall as much as 10.8%
to A$1.075, on course for their worst intraday fall since March
23, 2020, if current losses hold
** Stock hits lowest since Feb. 21
** Australia's competition regulator flags major concerns
with Sigma Healthcare's proposed merger with retailer Chemist
Warehouse Group to form A$8.8 bln ($5.9 bln) company
** Says proposed integration across wholesale and retail
levels would limit competition in a number of markets,
jeopardising competition in the domestic pharmaceutical sector
** Citi says regulator's statement of issues doesn't come as
a surprise "given the complexity of the proposed transaction and
the unique regulatory framework of the pharmacy retailing &
distribution industry"
** While the regulator is due to announce its decision on
Sept. 4, Citi expects the review process could be extended
further should remediation measures be required to approve the
transaction
** Stock up 19.9% this year, as of last close
($1 = 1.5013 Australian dollars)
(Reporting by Shivangi Lahiri and Poonam Behura in Bengaluru)
((shivangi.lahiri@thomsonreuters.com))