Sigma Healthcare (ASX:SIG) announced plans to implement data-sharing rules to address regulatory concerns surrounding its proposed $700 million merger with Chemist Warehouse.
In June, the Australian Competition and Consumer Commission expressed apprehensions that the merger could harm pharmacies supplied by Sigma by granting Chemist Warehouse access to sensitive data, potentially undermining competition in the sector.
To mitigate the concerns, Sigma has proposed allowing franchisees the option to terminate their agreements and has committed to restricting the use of confidential data from Sigma's wholesale customers and franchisees for three years.
The ACCC is currently seeking stakeholder feedback on Sigma's draft undertaking.
ACCC Chairwoman Gina Cass-Gottlieb emphasised the importance of public consultation, stating, "We are now seeking feedback from stakeholders on whether the draft undertaking offered by Sigma may be capable of addressing the competition concerns arising from its proposed acquisition of Chemist Warehouse."
However, she cautioned that this consultation does not guarantee acceptance of the undertaking by the ACCC.
The ACCC is soliciting feedback on a court-enforceable undertaking proposed by Sigma Healthcare regarding its planned acquisition of Chemist Warehouse.
Sigma, a major wholesaler of prescription medicines, and over-the-counter products, and a franchisor of various pharmacy banners, aims to address potential anti-competitive concerns through this undertaking.
The ACCC invites submissions on Sigma's proposed undertaking by Oct. 14.