Sigma Healthcare Shareholders Approve Merger with Chemist Warehouse, Creating $5.5 Billion Pharmacy Giant
At a vote held on Wednesday, Sigma Healthcare shareholders overwhelmingly approved a merger with Chemist Warehouse, paving the way for the creation of an $8.8 billion pharmacy and retail behemoth.
Over 99% of proxy shareholders cast their votes in favor of the deal, according to a company presentation made at the meeting in Melbourne. The final result will be publicly released later on Wednesday.
This overwhelming support far exceeds the regulatory requirement of 75% approval for the deal to proceed. The decision marks the culmination of over a year of negotiations between Sigma, Chemist Warehouse, and regulators who had initially raised antitrust concerns. However, the transaction received the green light in early November.
As part of the merger, Sigma will provide Chemist Warehouse shareholders with A$700 million in cash and stock, effectively creating a backdoor listing for Chemist Warehouse on the Australian Securities Exchange (ASX). Chemist Warehouse was previously considered a candidate for an initial public offering (IPO), but the Sigma transaction allows it to sidestep that process amid volatile financial markets.
The merged company will be 85.8% owned by Chemist Warehouse, supplying 1,200 Sigma-aligned pharmacies and operating over 658 Chemist Warehouse outlets, as per regulatory filings. The founders of Chemist Warehouse will retain a 14.25% stake in the combined entity.
Chemist Warehouse, known for its low prices, large stores, and aggressive advertising campaigns, reported strong financial performance in the first half of 2025. Revenue reached A$5.15 billion, representing a 13% increase year-over-year. Earnings before interest and tax (EBIT) surged by 35% to A$438 million during the period.