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))
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