CMA refers pharmacy merger for in-depth investigation
The CMA has referred Celesio鈥檚 anticipated acquisition of Sainsbury鈥檚 pharmacy business for a phase 2 investigation.
Earlier this month, the Competition and Markets Authority (CMA) said that it would refer the merger for an in-depth investigation unless Celesio offered acceptable undertakings to address the CMA鈥檚 competition concerns.
The CMA鈥檚 initial investigation identified 78 local areas where customers may be affected by a loss of competition between Lloyds Pharmacy (a Celesio subsidiary) and Sainsbury鈥檚 pharmacies. The CMA also indicated that in other local areas it had been unable to reach a positive conclusion on whether the merger gives rise to a realistic prospect of a substantial lessening of competition.
Celesio has not offered any undertakings in lieu and the CMA will therefore now refer the merger.
A decision on the merger will be made by a group of independent panel members supported by a case team of CMA staff. The deadline for the final report will be 13 June 2016.
Details of the CMA鈥檚 decision will be available on the case page in due course.