Wesfarmers (ASX:WES) share price gains amid rumours of Priceline rival
Wesfarmers might need to be ready for some competition…
Mitchell Lawler is a site writer at The Motley Fool Australia. He holds a Bachelor of Engineering and previously worked in the consulting space while his interest in equities grew. Mitchell is now completing his studies in finance and wealth management and hopes to help others in their investing journey.
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Wesfarmers Ltd(ASX: WES) share price is inching higher today despite reports there could be some competition over its takeover target,
Australian Pharmaceutical Industries Ltd(ASX: API) – operator of the Priceline chain of stores.
Wesfarmers seeks to acquire Priceline in $687 million deal
Source: Inside Retail.
Retail conglomerate Wesfarmers has made a $687 million bid at buying up Priceline’s parent company Australian Pharmaceutical Industries an offer that will net API’s shareholders a 21% premium.
According to Wesfarmers, the deal will provide capital and investment to strengthen API’s competitive position, as well as the position of its community pharmacy partners.
The acquisition would see Wesfarmers take control of Priceline Pharmacy, Clear Skincare, Pharmacist Advice, Soul Pattinson Chemist and Club Premium.
Wesfarmers managing director Rob Scott said the acquisition would also enable the conglomerate to enter the “growing health, wellbeing and beauty sector”.
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