Wesfarmers (ASX:WES) blocks Woolies’ offer for API

Conglomerate giant Wesfarmers (ASX:WES) is sticking to its plans to acquire Australian Pharmaceutical Industries (API) and intends to block Woolworths’ (ASX:WOW) offer.

The company said its proposal to acquire all shares in API remains in the best interests of API shareholders and will significantly benefit community pharmacists and Priceline franchisees. Wesfarmers also notes the non-binding proposal made by Woolworths to acquire API, and while Wesfarmers already owns a 19.3 per cent stake, it does not intend to accept any takeover offer made by Woolworths.

“Wesfarmers supports the community pharmacy model which allows pharmacists to meet the health and wellbeing needs of their patients and customers,” said Wesfarmers managing director Rob Scott.

“We’re committed to supporting pharmacist owners, many of whom operate small businesses, to grow their pharmacies over time. This includes growth in prescription medicines, along with growth in services and broader non-prescription health, personal care and beauty products.”

“Since announcing our proposal, we’ve continued to develop our plans for the API business. We have met with and listened to representatives from across the sector and we’re confident our proposal supports community pharmacists and their businesses, for the long-term.”

Shares in Wesfarmers (ASX:WES) are trading 0.5 per cent lower at $58.15.