(Bloomberg) -- Sigma Healthcare Ltd. shares surged to their highest since 2007 after Australia’s competition regulator approved the company’s A$8.8 billion ($5.8 billion) merger with pharmacy chain Chemist Warehouse.
Sigma’s stock jumped as much as 39% on Thursday after the Australian Competition and Consumer Commission said it will not oppose the planned deal after accepting a court-enforceable undertaking from the health-care supplier. The regulator previously raised concerns that the tie-up could reduce competition in pharmacy retailing.
The undertaking requires Sigma not to enforce contractual restrictions or costly fees on pharmacies that want to exit the group, and to safeguard and delete their data, the ACCC said.
As part of the proposed deal announced in December, Chemist Warehouse will become a listed company. Sigma will acquire the Melbourne-based firm, whose large discount drugstores are a staple of Australian high streets, via a merger in which it will pay A$700 million cash to the retailer’s owners.
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