Updates

** Shares of Australia's Sigma Healthcare SIG.AX rise as much as 7.41% to A$2.610

** Australia's competition watchdog on Thursday gave its nod for Sigma and discount pharmacy firm Chemist Warehouse to go ahead with their proposed A$8.8 bln ($5.86 bln) merger

** Morningstar says the remedies that both firms have taken do address competition concerns

** Brokerage raises fair value estimate for Sigma by 99% to A$1.55 apiece with the largest merger hurdle cleared

** We view the acquisition as strategically sound and transformational for Sigma as it creates Australia’s largest pharmacy chain backed by significant distribution infrastructure - Morningstar

** Analysts at Citi raise PT for Sigma Healthcare SIG.AX to A$2.50 from A$1.40; maintain "neutral" rating

** Brokerage expects the combined group to generate EBIT of ~A$800 mln in FY26, its first full year

** Stock has more than doubled in value this year, as of last close

($1 = 1.5013 Australian dollars)

(Reporting by Namrata Verma and Sherin Sunny in Bengaluru)

((Sherin.Sunny@thomsonreuters.com))