Li Ka-shing's AS Watson weighs bid for Priceline pharmacies
One of the world's largest retail pharmacy operators is circling a distressed group of Australian Priceline stores, in what would mark its first move into the local market.
AS Watson, the healthcare and beauty arm of Hong Kong conglomerate CK Hutchison Holdings, is weighing a bid for 92 Priceline pharmacies previously operated by the Infinity Pharmacy Group. The group runs the Watsons and Superdrug pharmacy chains across Asia and Europe, with more than 16,000 stores in 28 markets. CK Hutchison holds roughly 75 per cent of AS Watson, with Singaporean sovereign wealth fund Temasek Holdings owning the remaining stake.
Transaction snapshot
Deal value: At least $500 million (asking price for the 92-store portfolio)
Deal type: Potential distressed acquisition
Potential buyer: AS Watson (CK Hutchison Holdings / Li Ka-shing)
Other interested parties: Multiple private equity firms, Chemist Warehouse, TerryWhite Chemmart, Star Pharmacy Group, Chempro, Chemist Discount Outlet
Three sources confirmed AS Watson intends to conduct due diligence on the portfolio. The company declined to comment on what it called "market speculation." Executives from AS Watson had previously visited Australia and met with Infinity founding partner Ameet Jeraj several years ago.
AS Watson would need FIRB approval to complete any purchase. The deal comes at an interesting time for CK Hutchison, which is pursuing a dual Hong Kong–London listing for AS Watson in 2026, targeting a valuation of around US$30 billion ($42.3 billion). Goldman Sachs and UBS are advising on the planned IPO, which could raise up to US$2 billion ($2.8 billion). CK Hutchison's retail division reported HK$99 billion (approximately $18 billion) in revenue for the first half of 2025, up 41 per cent year on year.
Li Ka-shing, whose estimated wealth sits at US$42.2 billion ($59.5 billion), has held significant Australian investments since the late 1990s, spanning infrastructure, energy, agriculture, and real estate. The 97-year-old tycoon handed control of his business empire to his son, Victor Li, in 2018 but remains involved.
The portfolio’s collapse followed years of financial difficulties and a failed recapitalisation plan between Infinity and Wesfarmers. Secured creditors are owed more than $400 million.
Wesfarmers owns Australian Pharmaceutical Industries (API), which it acquired in 2022 for $774 million. API owns the Priceline brand and is owed approximately $110 million from Infinity. The 92 stores represent about 30 per cent of API's drug wholesale turnover.
Of the 92 pharmacies, 72 operate under the Priceline brand through individual franchise agreements with API. Infinity was founded in 2007 by pharmacist Ameet Jeraj and grew to become Priceline's largest franchisee in Australia.
The administrator has shortlisted roughly 25 parties for due diligence, with indicative offers expected in early March. The administrator's preferred outcome is the sale or recapitalisation of all 92 pharmacies as a whole, or in larger clusters to a small number of buyers.
The Pharmacy Guild, which represents thousands of independent pharmacies, is pushing back against further consolidation. The lobby group has flagged plans to write to regulators including state and territory pharmacy councils and the Australian Competition and Consumer Commission (ACCC). Its core concern is that the sale could allow larger chains — particularly Chemist Warehouse — to expand their dominance.
