ACCC receives API/Sigma merger authorisation application: seeks submissions

The Australian Competition and Consumer Commission has received an application for authorisation of the proposed merger of Australian Pharmaceutical Industries Limited and Sigma Company Limited today and is seeking submissions from interested parties.

API and Sigma are both involved in the manufacture, wholesale and distribution of pharmaceutical and healthcare products and the provision of support services to retail pharmacies, including the operation of retail pharmacy banner groups.

The authorisation process allows the ACCC to grant immunity, on public benefit grounds, for mergers and acquisitions that might otherwise contravene sections 50 or 50A of the Trade Practices Act 1974. In order to grant an authorisation of a proposed merger, the ACCC must be satisfied in all the circumstances that the proposed acquisition would result, or be likely to result, in such a benefit to the public that the acquisition should be allowed to take place.

On 17 April 2002 the ACCC decided to oppose the proposed merger between API and Sigma. Authorisation is now being sought by the parties on public benefit grounds.

A copy of API and Sigma's submission in support of its application will be available from the ACCC's website at: http://www.accc.gov.au. To assist the ACCC in its consideration of the application, interested parties are invited to make a submission to the ACCC regarding API and Sigma's application. The deadline for submissions is Tuesday, 6 August 2002.

Authorisation is a public process. The Act requires submissions to be made publicly available. Submissions are placed on a public register located in Canberra and may be also placed on the ACCC's website. In limited circumstances the ACCC may grant confidentiality to material contained in submissions and not place it on the public register or website. A request for confidentiality must be made prior to, or at the time of, lodging the submission.

If you wish to lodge a submission, please address it to: The General Manager, Mergers and Asset Sales Branch, Australian Competition & Consumer Commission, PO Box 1199, DICKSON ACT 2602 and ensure it reaches the ACCC by Tuesday, 6 August 2002. The ACCC can also be notified by e-mail to adjudication@accc.gov.au or fax on (02) 6243 1212.