Chemist Warehouse will merge with pharmacy giant Sigma Healthcare, under a $8 billion merger plan.
Under the proposal, Chemist Warehouse will be acquired and become a publicly listed company made up of more than 900 stores across Australia, New Zealand, Ireland and China.
The merger, once on the ASX, will be among the top 200 listed companies.
Sigma Healthcare owns Amcal, Guardian, Discount Drug Stores and PharmaSave retailers while Chemist Warehouse operates more than 500 Chemist Warehouse and 21 MyChemist stores, with 8000 employees.
It's anticipated the merger would bring together a massive full-service pharmacy wholesaler, distributor and retail franchiser under the one banner.
The new company is expected to generate more than $3 billion in revenue in the first year of the contract, if the merger were to be approved.
Sigma chairman Michael Sammells told investors the proposed move would push both companies in a "compelling" direction.
"This is a rare opportunity to combine the core competencies of two strong healthcare businesses," he said.
Chemist Warehouse Group co-founder Mario Verrocchi, who would join the board of directors with Jack Vance if the merger were approved, reaffirmed the brand's commitment to brick-and-mortar retail stores.
"Online is always growing, but it's never going to be significant in that it's never going to be more than 10 per cent of what we do," he said.
Both the Australian Consumer and Competition Commission and New Zealand's Overseas Investment Office will need to approve the merger for it to proceed.
When asked about potential difficulties with ACCC approval, Mr Sammells told investors he "respected" the watchdog's processes and committed to working with them.
But not everyone welcomed the move.
A Pharmacy Guild of Australia spokesperson raised concerns over patient care, competition, community pharmacy ownership and the future of wholesaling.
"The community pharmacy model has guaranteed patients access to vital and life-saving medications without putting profit over patient care," he said.
"Fundamental to this outcome is pharmacist owned community pharmacies combined with a limit on the number of community pharmacies owned."
The guild called for the strengthening of community pharmacy laws and regulatory oversight in every state.
"Regulators must however be wary of increased corporatisation in the community pharmacy sector, and carefully scrutinise complex business models for compliance with community pharmacy ownership laws," he said.