Sigma extends gains as ACCC consults on merger remedy
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The news: Sigma Healthcare was the best performing ASX 200 company after morning trading, extending Tuesday's double-digit gains after the competition regulator invited submissions on the pharmacy wholesaler's proposed remedy to address concerns over its proposed acquisition with Chemist Warehouse.
The numbers: Sigma shares were up 6.4% to $1.87 by 1:15pm AEST, having surged 24.7% on Tuesday.
The context: Investors turned optimistic on Sigma after the Australian Competition and Consumer Commission (ACCC) said it was seeking feedback from stakeholders on whether a draft undertaking offered by Sigma could address the regulator's competition concerns over the merger.
ACCC chair Gina Cass-Gottlieb said on Tuesday that the public consultation "should not be interpreted to mean that this or any other form of undertaking will ultimately be accepted by the ACCC".
