15/12/2021 - 16:21

Wesfarmers digs heels on API bidding

15/12/2021 - 16:21

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Wesfarmers says it won’t accept any takeover offer made by Woolworths for API, as the retail giants fights for ownership of Australian Pharmaceutical Industries.

Wesfarmers digs heels on API bidding
API owns Priceline Pharmacies.

Wesfarmers says it won’t accept any takeover offer made by Woolworths for API, as the retail giants fight for ownership of Australian Pharmaceutical Industries.

Wesfarmers announced to the ASX today that it would use its 19.3 per cent stake in API to block any potential acquisition of the company.

The update follows Woolworth’s $872 million takeover offer for Australian Pharmaceutical Industries earlier this month, pitting the retail giant against Wesfarmers.

API at the time said Woolworth’s offer of $1.75 per share was superior to Wesfarmers' bid of $1.55 per share.

Wesfarmers said that it had the right to match any proposal in the event that it becomes capable of acceptance and is considered superior by the API Board.

The company said it believes that its proposal to acquire API remains in the best interest of API shareholders and that it would significantly benefit community pharmacists and Priceline frenchisees. 

"Wesfarmers supports the community pharmacy model which allows pharmacists to meet the health and wellbeing needs of their patients and customers," managing director Rob Scott said. 

"We’re committed to supporting pharmacist owners, many of whom operate small businesses, to grow their pharmacies over time.

"This includes growth in prescription medicines, along with growth in services and broader non-prescription health, personal care and beauty products."

API had entered into a merger with Wesfarmers earlier this year after Wesfarmers took a 19.3 per cent stake in the company. 

Wesfarmers shares closed the day up to trade at $58.46.

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