ACCC Approves Wesfarmers’ API Takeover
The ACCC has this morning said it will not oppose the proposed acquisition of Australian Pharmaceutical Industries by retail giant Wesfarmers.
“Our investigation showed that there are many large and well-established retailers, including Chemist Warehouse, Woolworths and Coles, that will compete strongly with Wesfarmers after the acquisition in both the market for over-the-counter pharmaceutical products and the market for beauty & personal care products,” ACCC Commissioner Stephen Ridgeway said.
“We consider that API’s competitors will continue to compete strongly with Wesfarmers after the acquisition.”
This comes after Wesfarmers $1.55 per share bid was topped by Woolworths, who offered $1.75 per share in September, before retracting its bid last month.
The deal still needs to be approved by API shareholders. Considering Wesfarmers already owns 19.3 per cent of the business, shareholder approval shouldn’t be a problem.