Chemist + Druggist is part of Pharma Intelligence UK Limited

This is operated by Pharma Intelligence UK Limited, a company registered in England and Wales with company number 13787459 whose registered office is 5 Howick Place, London SW1P 1WG. The Pharma Intelligence group is owned by Caerus Topco S.à r.l. and all copyright resides with the group.


This copy is for your personal, non-commercial use. Please do not redistribute without permission.

Printed By

UsernamePublicRestriction

UPDATED: Competition watchdog probes Pharmacy2U purchase of LloydsDirect

The competition authority is looking into the “assets merger” of Pharmacy2U and LloydsDirect, the UK’s two largest online pharmacies, it has revealed.

The Competition and Markets Authority (CMA) is investigating Pharmacy2U’s acquisition of LloydsDirect, it announced today (November 30).

 

According to the CMA, it served initial enforcement orders on Pharmacy2U, LloydsDirect, P2U Holdings Limited, G Square Capital II L.P. and G Square Healthcare Private Equity LLP earlier this week (November 28).

 

The enforcement order said that the CMA is considering…whether [the merger] has resulted or may be expected to result in a substantial lessening of competition in any market or markets in the United Kingdom”.

 

Read more: UPDATED: Pharmacy2U buys LloydsDirect for undisclosed sum

 

It said that the two companies must not “take any action” that might lead to the “integration” of the businesses, transfer ownership or control of either business, or make any changes to “key staff” unless they have the “prior written consent of the CMA”.

 

The businesses must be “carried on separately” with “separate sales or brand identity” and no “business secrets, know-how, commercially-sensitive information, intellectual property or any other information of a confidential or proprietary nature…shall pass directly or indirectly” between them “except where strictly necessary”, it added.

 

The CMA said that it has not yet “formally” begun its “phase 1 investigation” and that both the launch of its “assets merger inquiry” and the deadline for its “phase 1 decision” are yet to be confirmed.

 

It encouraged interested parties to submit “written representations” about issues related to competition or in the public interest to [email protected]

 

 

Pharmacy2U "confident"

 

 

A Pharmacy2U spokesperson told C+D that both Pharmacy2U and LloydsDirect “will fully collaborate with the CMA throughout the process and are confident that the CMA will decide to approve this transaction”.

 

They added that the two brands will “run independently” until it “[receives] approval from the regulator”.

 

“We are committed to continuity and service excellence and our focus is on looking after our patients and our people,” they said.

C+D also approached LloydsDirect for comment.

 

Read more: ‘A natural fit’: Pharmacy2U joins CCA following LloydsDirect takeover

 

C+D reported last month that Pharmacy2U had bought LloydsDirect for an undisclosed sum

 

And the Company Chemists’ Association (CCA) announced days later that Pharmacy2U had joined its ranks.

 

According to NHS Business Services Authority (NHSBSA) data hosted on PharmData, Pharmacy2U and LloydsDirect were the top two pharmacies for items dispensed in August 2023, with Pharmacy2U dispensing 1.6 million items and LloydsDirect dispensing 1.1 million items. 

Related Content

Topics

         
Pharmacist Manager
Barnsley
£30 per hour

Apply Now
Latest News & Analysis
See All
UsernamePublicRestriction

Register

CD137653

Ask The Analyst

Please Note: You can also Click below Link for Ask the Analyst
Ask The Analyst

Thank you for submitting your question. We will respond to you within 2 business days. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel