Woolies might face political and regulatory hurdles in $ 870 million Priceline bid

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Mr Cousins ​​additionally famous 14.9 per cent of Woolworths’ stake within the Endeavor video games and liquor enterprise as a possible level of competition for the Guild. Bell Potter analyst John Hester additionally famous that the Guild was a “fierce defender of the foundations.”

Market watchers have additionally identified potential issues for Woolworths when it comes to competitors considerations, contemplating that the grocery store is already a significant participant within the well being and sweetness business, whereas the proprietor of Bunnings and Officeworks Wesfarmers will not be. no.

Federal Well being Minister Greg Hunt stated he helps the neighborhood pharmacy mannequin.Credit score:Alex Ellinghausen

“Information [Woolworths’ successful acquisition of foodservices business PFD], ACCC approval might be obtained for Woolworths, however it should take time and there’s a larger ACCC danger for Woolworths than Wesfarmers, ”Mr Cousins ​​stated.

JP Morgan analyst Bryan Raymond additionally stated the ACCC “might weigh in,” however acknowledged that competitors within the pharmaceutical business is prone to stay robust with the presence of rivals reminiscent of Chemist Warehouse and Sigma.

The ACCC has stated up to now that it’s conscious of the proposed acquisition and expects a submission from Woolworths. A Guild spokesman stated he had nothing extra so as to add at this level.

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Outgoing Well being Minister Greg Hunt advised reporters on Friday that he had no particulars on Woolworths’ proposal, however strengthened the federal government’s perception locally pharmacy mannequin.

“I consider very strongly in neighborhood pharmacy, now we have a seventh neighborhood pharmacy settlement value $ 18.3 billion. It has labored with the Pharmacy Guild and the Pharmaceutical Society of Australia,” he stated.

“In enterprise issues, I’ve no particulars, sorry, which shall be one for the corporate and the regulators.”

In the meantime, Labor well being spokesman Mark Butler stated the opposition was awaiting the evaluation of the settlement by the competitors regulator.

“Australians depend on their local people pharmacies for handy, efficient and dependable recommendation. If the acquisition is accepted, we anticipate Priceline to proceed to observe all related guidelines across the pharmacy together with native guidelines,” he stated. .

A spokesman for the Australian Pharmaceutical Society stated the group was searching for extra info on the supply and would “proceed to watch the potential results of any vital adjustments within the business”.

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