Sigma Healthcare, a leading pharmacy wholesaler and franchisor of renowned brands such as Amcal + and Discount Drug Store, is proposing to merge with Chemist Warehouse, a significant pharmacy franchisor and distributor. The merger will be transformational for Sigma, creating a highly competitive wholesaler, distributor and pharmacy franchisor, with an implied market capitalisation post-merger of more than $25 billion.
The ACCC's thorough investigation concluded that, with the undertaking provided by Sigma, the merger is unlikely to substantially lessen competition in any relevant market. This finding was underpinned by the evidence of effective competition at every level of the pharmacy supply chain that will continue, alongside evidence of other significant retail competition and the differentiated consumer offerings provided by both Sigma and Chemist Warehouse.
The Gilbert + Tobin team was instrumental in navigating the complexities of this transaction, enabling the ACCC to consider detailed evidence of the competitive dynamics and economics of the industry in the context of a complex regulatory environment.
The team was led by Competition, Consumer + Market Regulation partner and head of the Group, Elizabeth Avery and partner Liana Witt, supported by special counsel Richard L’Estrange, and lawyers Sophie Player, Courtney Olden, Radha Rathi, Neeharika Maddula, Chris Goutama, Hannah Pearson, James Hilder and Amelia Harvey.
We are thrilled to have assisted Sigma achieve a great result on a significant step towards such an important and transformational merger for Sigma, one of the largest in recent years. The case demonstrated the importance of rigorous analysis of the evidence in light of a complex regulatory landscape. The formidable capabilities and hard work of the G+T team, working alongside a deeply engaged client, made this result possible.
We are incredibly excited to have worked closely with our valued client Sigma to secure ACCC approval for this significant transaction. Today’s result is a testament to the dedication, perseverance and expertise of the G+T team.
The Competition, Consumer + Market Regulation group is the go-to competition practice in Australia. They have established a reputation as a “game changer”, achieving successful outcomes on high stakes transactions and litigation, based on a deep understanding of their clients’ businesses, and the ability to cut through with innovative solutions. Their success is built on the deep bench strength of an outstanding team. With a team of more than 40 lawyers, including 10 partners and 5 special counsel, Gilbert + Tobin’s market-leading Competition, Consumer + Market Regulation practice is one of the largest in Australia, consistently top-ranked across all leading peer and client reviewed legal directories.
For more information about Gilbert + Tobin’s Competition, Consumer + Market Regulation Team, please visit https://www.gtlaw.com.au/expertise/competition-consumer-and-market-regulation