If you need proof that the $8.8 billion reverse listing is unusual, cast your mind forward to the company’s results on Thursday. They’re almost irrelevant.
Already a subscriber?If you need further proof that the proposed $8.8 billion Sigma Healthcare-Chemist Warehouse deal breaks most of the usual M&A rules, cast your mind forward to the chemist group’s results on Thursday. They’re almost irrelevant.
Investors hoping for a detailed Chemist Warehouse update at the Sigma results will be disappointed. Shareholders are being told to expect a slide or two in the presentation pack, presumably an update on the sales numbers released late last year, but not much else. This deal is also slightly unusual in that, despite its size, it hasn’t attracted merger arbitrage funds. They’re mainly wary about regulatory risk .As for the long-only funds, the proposed deal has attracted some institutional names to the Sigma register, that until now, has been mainly noticeable for being largely unloved.
What about the other big question – the ACCC? The competition regulator began preliminary inquiries earlier this month, and the market is hoping it will be completed by mid-year. The analysts noted that Chemist Warehouse’s sales per store are nearly triple their peers. And they estimated Chemist Warehouse has 63 per cent of the front-of-store pharmacy market, and 13 per cent of the Pharmaceutical Benefits Scheme, accounting for a total of 27 per cent of the total markets. Factoring in department stores and supermarkets, the broker says, it has about 16 per cent of the wider market.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Chemist Warehouse has just launched a massive half-price sports nutrition sale. Here are the best buys to try7NEWS brings you the latest local news from Australia and around the world. Stay up to date with all of the breaking sport, politics, entertainment, finance, weather and business headlines. Today's news, live updates & all the latest breaking stories from 7NEWS.
Read more »
Industrial property sales slump, but agents predict online shopping-powered warehouse boomDespite investment deal volumes in the industrial property sector slumping by 26 per cent in the past 12 months, agents predict the growth of internet shopping and data storage will send transactions soaring next year.
Read more »
Lease for historic Sydney waterfront site expected to fetch $80 millionInterest in the 170-year-old sandstone warehouse at The Rocks is expected from local and overseas buyers.
Read more »
Props from botched Willy Wonka event raise more than £2,000 for Palestinian aid charityGlasgow record shop Monorail Music auctioned the props on eBay after they were discovered in a bin outside the warehouse where event took place
Read more »
Amazon’s ‘ZenBooths’ a ‘slap in the face’ to stressed workersAmazon has sought to improve the morale of its stressed-out warehouse workers and reduce injuries by setting up so-called “ZenBooths” — interactive kiosks that are billed as “mindful practice rooms,” according to reports.
Read more »
‘More than the usual gastro’: at least 260 people report symptoms after outbreak at Victorian music festivalThose who attended the Esoteric festival in Donald on 8-12 March warned about Shigella bacteria
Read more »