Bestway Group and Lexon UK Holdings have agreed to sell pharmacies in 12 locations after the regulator raised competition concerns.
Bestway Group subsidiary Well Pharmacy has in April announced the acquisition of Lexon, a family-owned pharmaceutical wholesaler and independent pharmacy owner.
A fast-track Phase 1 investigation by the Competition and Markets Authority (CMA) has found that the merger could lead to a significant lessening of competition between retail pharmacies in 12 local areas located in Liverpool and North East England.
Bestway operates approximately 750 pharmacies nationwide under the Well brand. Lexon operates 46 pharmacies under the Knights Pharmacy brand across the Midlands, North West, and North East of England, and Asurex, a wholesale perfume supplier.
The CMA said the businesses conceded that the deal raises competition concerns in these areas and have submitted proposals to sell pharmacies within these areas to restore the competition that would otherwise be lost as a result of the deal.
“Pharmacies are essential public health services, and it’s vital that the loss of competition brought about by a deal like this shouldn’t leave people with reduced choice or worse services when they need medical support,” Colin Raftery, CMA senior director of mergers, said.
“The CMA will now carefully consider whether the remedy put forward by Bestway will address our concerns and ensure that customers in the affected areas continue to have access to good quality chemists.”
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