There is a strong case for the merger to be stopped to protect smaller pharmacies from the merged monolithic organisation which could very easily destroy their businesses and SIG as a monopoly could increase its prices at all CW stores without competitors.
CW got its break when SIG offered 12 months interest free terms on stock about 25 years ago when management were trying to lift profits with advanced sales and there is a fraud case avail to be seen on a Google search. Imagine SIG or any supplier becoming your interest free banker for stock on your shelves and that is how CW got started and reason in part why CW owed SIG about $2-300 million a 3-5 years ago when they changed supplier and then there was a Class Action against SIG its banker..how strange.
the case is there but #ACCC might not know the back story or the future risks to consumer when there is no other competitor around. Small Suppliers will also need to worry due to pressure pay by giving away part ownership. If SIG merger does go ahead then SIG will be on box seat to make a lot of money after destroying lots of small pharmacies who fear speaking up. this is not investment advice just an opinion of possibilities
Who will stand up to be counted ?
SIG Price at posting:
$1.07 Sentiment: None Disclosure: Not Held
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