The Competition Authority has decided to carry out a full investigation into the proposed takeover of the Whelehan Group by UniPhar, the pharmaceutical wholesaler.

The authority will conduct what is known as a "phase two investigation", which is an in-depth inquiry that requires the parties involved to provide detailed financial information to the authority.

The Competition Authority is required, under the mergers and acquisitions section of the Competition Act 2002, to consider whether certain acquisitions might "substantially lessen competition" in markets for goods and services in the Republic.

The deal, believed to be worth between €45 million and €50 million, involves the acquisition of Ammado Limited, the holding company for the Whelehan Group.

Both parties are involved in the wholesale distribution of pharmaceutical and healthcare products.

After a preliminary investigation (known as a phase one review) lasting one month, the Competition Authority said it needed more time and information to rule on whether the transaction would substantially lessen competition.

The authority has until August 8th, 2004, to make a final determination.

A spokesman for UniPhar said the company noted the announcement but remained confident that the transaction would go through.

A spokesman for the authority said: "The investigation will examine the competitive effect of the proposed acquisition on the wholesale distribution of pharmaceutical and healthcare products to retail pharmacies."

Interested parties are invited to make written submissions by May 26th, 2004, to the authority.