Yahoo Finance Bunnings, Kmart owner looks to add pharmacies business for $687m
The owner of Bunnings and Kmart is looking to add another mega-chain to the list by looking to acquire Priceline pharmacies.
Parent company Wesfarmers has made a bid towards Priceline valuing it at $687 million with Wesfarmers managing director Rob Scott saying it provides an attractive opportunity to enter the health, wellbeing and beauty sector.
The potential acquisition comes at a time when business leaders have been working with the Federal Government to assist in the vaccine rollout.
Bunnings is one potential business where the Government has considered putting in mass vaccination hubs for greater accessibility for the community.
Pharmacies around the country have been playing a key role in the vaccine rollout, especially in more rural communities.
The move could allow Wesfarmers to play an active role in getting the country vaccinated.
However, the owner of Priceline Australian Pharmaceutical Industries (API.AX) is not as convinced about selling its business - suggesting the bid may be opportunistic considering the timing.
“The indicative proposal has been made at a time where COVID-19 restrictions have resulted in store and clinic closures and these have significantly impacted API's operational performance,” API said.
“The API board is undertaking an analysis of whether the indicative proposal is reflective of the long-term growth prospects of API and the expected short-term impacts of the pandemic-related lockdown restrictions.”
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