The Tβnaiste has asked the Competition Authority to investigate the purchase of the Unicare chain of pharmacies by the German group Gehe.

The proposed deal is said to be worth about £100 million (€127 million) and will give Gehe about 40 outlets throughout the State.

Gehe controls the wholesale pharmacy group, Cahill May Roberts. Already this year, it has acquired nine Crowley chain outlets, while it bought eight Ryan outlets last month.

Neither the Crowley nor Ryan purchase was referred to the Department of Enterprise, Trade and Employment. The German group would become the largest chain nationally and in Dublin if the Unicare deal was sanctioned, Ms Harney said. At a presentation in Dublin, she said she did not approve the deal, which was referred to the Department under the Mergers and Takeovers Acts.

The authority has been given until January 29th to make its report, after which Ms Harney will decide whether further action is necessary.

A major operator with more than 1,400 outlets, the firm operates in Britain, the Czech Republic, Norway, the Netherlands and Italy. The group recorded revenues of €12.4 billion (£9.8 billion) and a pre-tax profit of €207.1 million in the first nine months of 2001.

Its pre-tax profit in the retail pharmacy sector in that period was €39.1 million, up more than 39 per cent on the previous comparable period, after acquisitions.