SYDNEY, June 17, 2026, 07:01 AEST
- Sigma Healthcare shares closed at A$2.81 on Tuesday, rising 0.36%. The move comes after Monday’s bounce following the company’s decision to exit the Boots sale.
- The company said buying Boots doesn’t fit its current “strategic and capital investment objectives.”
- The S&P/ASX 200 ended Tuesday at 8,917.70, rising 3.70 points or 0.04%, its latest close for the Australian benchmark.
Sigma Healthcare opened in the ASX pre-open Wednesday holding onto most of the rally from its failed Boots deal. The Chemist Warehouse owner ended talks to buy the UK pharmacy chain, with investors now back to focusing on Sigma’s Australian growth plans.
Timing is key here. Sigma shares slid last week after it said talks with Boots were at an early stage, following a Financial Times report that suggested the deal could value Boots at nearly $10 billion. Sigma pulling out has eased worries about management getting distracted by a big overseas deal while it’s still working through the Chemist Warehouse merger.
ASX cash market sat in pre-open at the dateline. No SIG trades had gone through yet on Wednesday, with normal equity trading set for 09:59:45 to 16:00 Sydney time.
Sigma ended at A$2.81 on Tuesday, up 1 cent for the day. Still, shares were off 3.77% from last week’s A$2.92 finish. Monday’s gain didn’t wipe out all of the drop after the Boots news.
The company said its board decided to drop plans for Boots and “cease discussions immediately” after taking a first look. International growth is still one of its four main strategies, but management said Boots doesn’t fit its current capital plans.
Relief showed up for investors. “Investors appear to have breathed a sigh of relief,” Marc Jocum, senior product and investment strategist at Global X ETFs, told Reuters. According to Jocum, the bounce in shares pointed to shareholders wanting Sigma to stick to its current business instead of chasing another big acquisition. Reuters
Sigma’s plan to expand in the UK is moving ahead, just at a slower pace. Back in May, the company announced its entry with a memorandum of understanding with GreenLight Healthcare. Sigma is set to take a 75% stake in some GreenLight stores, and may rebrand or develop as many as five locations under the Chemist Warehouse name to start. CEO Vikesh Ramsunder described the project as “a measured market access into the UK.”
Australian Chemist Warehouse sales are the near-term focus. Sigma reported a 16.7% jump in branded-store sales in Australia for the year to April 30. Like-for-like sales gained 14.4%. International store sales climbed 24.7% in the year to March 31.
Wesfarmers Health pushes on in Australia, operating the Priceline Pharmacy network with 419 community pharmacies. EBOS calls itself a major Australasian wholesaler and distributor. With the Boots deal now dropped, Sigma’s Australian delivery, store performance, and supply-chain gains matter more.
But the risk is still there, just different. Dropping the Boots deal takes away a funding and integration worry, but it means Sigma keeps a smaller UK presence for now. Any Chemist Warehouse sales slowdown, softer demand for GLP-1 weight-loss and diabetes drugs, or slower-than-expected merger benefits could leave investors less patient if the stock stumbles after its strong run since the Chemist Warehouse deal.
