Former ACCC chairman ‘suspicious’ about circumstances around Chemist Warehouse merger

Former ACCC chairman Allan Fels says he is “suspicious” about the circumstances bringing together the consolidation of Chemist Warehouse and Sigma Pharmaceuticals. Chemist Warehouse will get onto the ASX by merging with Sigma Pharmaceuticals in a merger valued at around $8.8 billion, placing it among the largest 200 listed companies, provided the deal is approved by the Australian Competition and Consumer Commission. After the merger, Chemist Warehouse shareholders – including its two founders – will own 85.75 per cent of the combined group and receive a $700 million payday. “I’m suspicious of the whole set of actions that are bringing about consolidation,” Mr Fels told Sky News Business Editor Ross Greenwood. “I think that from a longer-term point of view, there will be impact on competition. “Also, the style of the business is likely to change from that more personalised health advisory character to more of a straight business, and there will probably be some location changes.”