Australian Pharmacy Giant Born: Sigma Healthcare and Chemist Warehouse Merge
In a landmark deal, Sigma Healthcare shareholders have overwhelmingly approved a merger with Chemist Warehouse, paving the way for the creation of an A$8.8 billion pharmacy and retailing powerhouse. The merger, which garnered over 99% support from proxy shareholders, marks the culmination of more than a year of negotiations between the two companies and regulators.
A New Era in Australian Retail
The merged entity will supply 1,200 Sigma-aligned pharmacies and own over 658 Chemist Warehouse outlets, making it a dominant force in the Australian market. Chemist Warehouse, known for its aggressive pricing strategy, large stores, and high-profile advertising campaigns, will own 85.8% of the merged company. The chain’s founders will retain a significant stake, controlling 14.25% of the new entity.
Financial Performance
Chemist Warehouse’s financial performance has been impressive, with sales reaching A$5.15 billion in the first half of 2025, a 13% increase on the same period last year. Earnings before interest and tax (EBIT) also surged 35% to A$438 million during the same period.
A Strategic Move
The merger allows Chemist Warehouse to bypass the initial public offering (IPO) process, which would have been challenging in the current volatile financial market. Instead, the company will gain a backdoor listing on the Australian Securities Exchange (ASX) through the deal. Sigma will pay Chemist Warehouse shareholders A$700 million in cash and stock as part of the transaction.
Regulatory Hurdles Cleared
The merger’s approval marks the end of a long and complex regulatory process, which had raised antitrust concerns. However, regulators gave the green light for the transaction in early November, paving the way for the deal’s completion. The outcome of the vote easily surpasses the regulatory requirement of at least 75% total number of votes cast in favour for the deal to proceed.
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