Oct 1 Reuters Shares of Sigma Healthcare shot to their highest levels in 18 years on Tuesday, after the Australian healthcare group offered three major concessions to facilitate its A8.8 billion 6.09 billion merger with Chemist Warehouse.

Under the proposed concessions, Sigma will let franchisees who joined at the start of 2024 to opt out of their agreements without penalties for the next three years, the Australian Competition and Consumer Commission ACCC said in a statement.

Additionally, Sigma offered to limit how the company will use confidential information from its wholesale customers and franchisees for the next three years.

The company is also committing to remain a participating pharmaceutical wholesaler under the Commonwealth Government39;s Community Service Obligation program for at least five years, ensuring it meets specific service standards and compliance requirements.

The ACCC has delayed its decision on the SigmaChemist Warehouse deal to Nov. 7 from Oct. 24 to allow for further consultation on the concessions, it said.

Shares of Sigma soared 18.06 as of 0346 GMT to their highest levels since midFebruary 2007. The stock was the best performer on the benchmark index which is down 0.8.

We note that this list of undertakings could changebe extended by the ACCC, but see it as a positive that the process is progressing in a constructive manner and that the final decision date has not been pushed out significantly, Tom Godfrey, senior research analyst at…