" The deal sounds great on paper for concerned Sigma...

"
The deal sounds great on paper for concerned Sigma shareholders. If you ask me, although it may be ‘opportunistic’ by API to offer the deal after Sigma’s share price has been sold down, it may indeed be a good time for shareholders who are concerned about the business’s outlook to sell.

Looking at the deal itself, I imagine this “non-binding” offer will attract significant attention from the competition regulator, the ACCC. Also, API needs to conduct their due diligence and confirm the expected cost savings. To me, that’s kind of like saying, ‘we’ll buy your shares, but only if you can confirm they’re worth what we think they’re worth.’

Therefore, I personally wouldn’t be prepared to bank on the proposed deal being a success. Although if it indeed goes ahead the combined business would be on the front foot to deal with some of the headwinds plaguing the wholesale and retail pharmacy sector."

They suggesting a sell for two reasons

First ACCC might not approve it and second it's going to be a tough environment even if it goes ahead. Speculation is all good but I'm thinking little upside now going into festive season with lots of public holidays. Question is how will MDR benefit?