Just two months after Bestway’s Well Pharmacy subsidiary announced the acquisition of Lexon UK Holdings and Asurex Limited, the Competition and Markets Authority (CMA) has confirmed that the deal raises competition concerns in several local areas.
Well has around 750 pharmacies in the UK. In April, it completed the acquisition of Lexon, which operates 46 pharmacies across the midlands and north of England under the Knights Pharmacy banner, and Asurex, a pharmaceutical wholesaler with five depots in Redditch, Leeds, Durham, East Kilbride and Dublin.
Following a fast-track Phase 1 investigation, the CMA found that the merger could lead to a “significant lessening of competition” between pharmacies in 12 local areas located in Liverpool and the northeast of England.
The regulator said that following its ruling, the merging businesses have submitted proposals to sell pharmacies within these areas to restore the competition that would otherwise be lost as a result of the deal.
Colin Raftery, CMA Senior Director of Mergers, commented: “Pharmacies are essential public health services, and it’s vital that the loss of competition brought about by a deal like this shouldn’t leave people with reduced choice or worse services when they need medical support.
“The CMA will now carefully consider whether the remedy put forward by Bestway will address our concerns and ensure that customers in the affected areas continue to have access to good quality chemists.”
NAM Implications:
- Selling off 12 outlets to ensure a deal go-ahead for a 750 outlet group…
- …has to be a no-brainer.
- Proactive suppliers will have already formulated strategies on that basis…
