Watsons reportedly considering bid for Priceline pharmacy chain

Watsons, the health and beauty retail arm of Hong Kong-listed CK Hutchison (0001), is considering making an acquisition offer for the 92-store Priceline pharmacy chain, according to a report by The Australian Financial Review citing three sources.

The report said Watsons is interested in conducting due diligence on the portfolio of Priceline stores. If it proceeds with a transaction, the deal would require approval from Australia's Foreign Investment Review Board. A spokesperson for Watsons declined to comment on market speculation.

Other potential bidders include several private equity firms as well as industry players such as Chemist Warehouse, TerryWhite Chemmart, Star Pharmacy Group, Chempro and Chemist Discount Centre.

Cynthia ZHONG