News: ACCC clears Aspen bid for Sigma

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The Australian competition watchdog has given the green light to South African-based Aspen Pharmacare Holdings to acquire Sigma Pharmaceuticals Ltd (ASX:SIP) pharmaceutical's division for $900 million.

However, the Australian Competition and Consumer Commission (ACCC) says Aspen has to sell certain pharmaceutical brands so that it doesn't substantially lessen competition.

In October, the ACCC delayed its ruling when it raised concerns that Aspen's purchase of Sigma's generics business would eliminate the only competitor in the market for some of its drugs.

For the year ended 31 July 2010, Sigma reported a net loss of $219 million.