LloydsPharmacy Ireland plans to make a fresh submission for clearance for its planned takeover of McCabes Pharmacy with competition authorities, after hitting a setback with its original filing, made last October.
The deal, if ultimately cleared by competition regulators, would see two of the best-known retail pharmacy brands in the country merge their operations and create a behemoth in the sector with turnover of more than €200 million.
The Competition and Consumer Protection Commission (CCPC) notified LloydsPharmacy’s parent, Phoenix Group, and McCabes earlier this month that it was not satisfied with the responses provided by both parties to requests in January for more information on the transaction. It is believed the issue was technical in nature.
The commission declared the merger notification invalid under the Competition Act, 2002.
“We note the decision and welcome that the CCPC has expressed its willingness to further engage with Phoenix Group and McCabes Pharmacy,” said a spokesman for Phoenix. “We will continue to co-operate fully with the CCPC and will renotify the proposed acquisition in due course, as required by the CCPC.”
The commission said its decision that the merger notification was invalid “is not a decision on whether or not the proposed acquisition can be put into effect”.
The amalgamated group would trade under the McCabes brand and be led by chief executive of McCabes, Sharon McCabe. It is understood no branches will face closure off the back of the deal. The financial terms were not disclosed.
LloydsPharmacy operates 82 retail pharmacies across the State. Phoenix ultimately controls LloydsPharmacy and also ultimately controls United Drug (Wholesale) Ltd, one of two full-line pharmaceutical wholesalers in the Republic.
McCabes comprises a portfolio of 31 retail pharmacies, primarily located in Dublin and wider Leinster.
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