By Stuart Condie

SYDNEY--Wesfarmers Ltd. opposes retail rival Woolworths Group Ltd.'s approach for Australian Pharmaceutical Industries Ltd. and said it believes its proposal to acquire the pharmaceutical distributor is in shareholders' best interests.

Wesfarmers on Wednesday said it holds a 19.3% stake in API and would not vote in favor of any scheme that would give Woolworths control. It said it would not accept any takeover offer by the supermarket chain operator.

Woolworths this month made an all-cash proposal worth 1.75 Australian dollars (US$1.25) per API share, surpassing Wesfarmers' A$1.55 per share proposal previously recommended by the API board.

Wesfarmers has the right to match any proposal deemed superior.

Write to Stuart Condie at stuart.condie@wsj.com

(END) Dow Jones Newswires

12-14-21 1703ET