When will Chemist Warehouse shares be trading on the ASX?

A $9 billion monster is being created but when can you invest?

| More on:
Female pharmacist smiles with a digital tablet.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Earlier today, Sigma Healthcare Ltd (ASX: SIG) shares returned from their trading halt with an almighty bang.

Investors were scrambling to buy shares in response to its proposed merger with Chemist Warehouse.

If it completes successfully, this merger will create a ~$9 billion industry behemoth with earnings before interest and tax of $495 million.

Unsurprisingly, investors may now be wondering when they will be able to buy Chemist Warehouse shares. Well, let's take a look and find out.

When will Chemist Warehouse shares be trading on the ASX?

Firstly, you don't technically have to wait for Chemist Warehouse shares to arrive on the ASX boards if you want them in your portfolio.

That's because if the merger with Sigma Healthcare goes ahead, the Amcal owner's shares will become the shares of the merged entity, which is currently known as MergeCo.

Therefore, anyone owning Sigma shares today will own a slice of MergeCo if shareholders and regulators approve the transaction.

But when might that happen?

While the Sigma share price reaction today appears to indicate that the market is both happy with the merger plan and believes it will complete successfully, there's still a bit of work to be done before then.

Sigma's management notes that the proposed merger is expected to complete in the second half of calendar year 2024 if all goes to plan. But it could be worth the wait according to them.

Chemist Warehouse's chair, Jack Gance, believes the merger is the start of another big chapter. He said:

The combination of CWG's retailing and marketing capabilities and Sigma's state-of-the-art distribution infrastructure and logistics capabilities presents a unique opportunity for both CWG and Sigma shareholders. We look forward to building the next chapter of CWG's success for the benefit of our customers, staff, franchisees and shareholders.

This view was echoed by Sigma's chair, Michael Sammells. He adds:

The Proposed Merger is a step-change event for Sigma. With Sigma having had a commercial relationship with CWG and its founders spanning more than 40 years, we are excited by the efficiencies, synergies and growth opportunities that we anticipate being unlocked through the merger of the two complementary businesses. The combined group will have extensive capabilities and expertise to benefit franchisees and customers, including through more brand choice, products and services and expanded marketing capabilities.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Healthcare Shares

Stethoscope with a piggy bank in the middle.
Broker Notes

Australian health insurance: Does Macquarie prefer Medibank or NIB shares?

Medibank and NIB shares have both surged in 2025. Here’s what Macquarie expects now.

Read more »

Two brokers analysing stocks.
Healthcare Shares

Why does Macquarie think Fisher & Paykel shares are a buy?

Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH) shares have been on form over the past 12 months. During this…

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Healthcare Shares

Which small cap ASX share is jumping 10% on strong results

Investors have been bidding this stock higher today. But why?

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

Why Macquarie forecasts 30-50% upside for these ASX All Ords healthcare stocks

Macquarie updated its target price on these three ASX All Ords healthcare stocks.

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Healthcare Shares

Guess which ASX 200 stock is jumping 10% on big news

This stock is catching the eye with a strong gain on Thursday. But why?

Read more »

a young woman holds her hand to her ear and leans sideways as if to listen to something that's surprising her as her eyes and her mouth are wide open.
Healthcare Shares

Down 15% since January, are Cochlear shares now a buy?

Let's see what analysts are saying about this blue chip.

Read more »

Green arrow with green stock prices symbolising a rising share price.
Healthcare Shares

Guess which popular ASX 200 stock is up nearly 60% in less than 2 months?

Investors who bought this ASX 200 stock in the recent dip have been strongly rewarded.

Read more »

A senior pharmacist talks to a customer at the counter in a shop.
Healthcare Shares

Are Sigma Healthcare shares a good buy now after the merger with Chemist Warehouse?

Sigma Healthcare shares have soared 154% in 12 months. Can this stellar run continue?

Read more »