Business

LloydsPharmacy acquisition of McCabes cleared by watchdog

It follows an investigation looking at how the deal could affect competition between pharmacies, including potential consequences for consumers

McCabe's Pharmacy is to be bought out by LloydsPharmacy following approval from the competition watchdog. Picture Conor McCabe Photography.

Colin Gleeson
Fri Apr 26 2024 - 14:57

The purchase of McCabes Pharmacy by LloydsPharmacy has been cleared by the competition watchdog.

The go-ahead issued by the Competition and Consumer Protection Commission (CCPC) is subject to commitments involving the sale of two pharmacies in Lucan, Dublin.

LloydsPharmacy currently operates 82 pharmacies around Ireland. McCabes Pharmacy is a group of 31 outlets mainly based in the Dublin and Leinster regions.

Under competition law, the CCPC assesses mergers and acquisitions notified to it in order to protect competition.

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In competitive markets, businesses are incentivised to compete on price and improve the quality of their products and services.

CCPC merger investigations examine the potential impact a proposed deal may have on consumers, including changes to price, consumer choice, quality and innovation.

The proposed deal was renotified to the CCPC in February after the first notification received in October was declared invalid.

A preliminary investigation was established to look at how the deal would affect levels of competition between pharmacies, including potential consequences for consumers.

During the investigation, the CCPC had particular concerns about how levels of competition in the Lucan area of Dublin would be affected by the deal.

To address these concerns, LloydsPharmacy agreed to sell two pharmacies in Lucan – McCabes Pharmacy Finnstown and McCabes Pharmacy Griffeen Centre – to a buyer who will be approved by the CCPC.

In order to allow time in this case to finalise the commitments, a full investigation was opened.

LloydsPharmacy also agreed not to do anything which could negatively impact on the pharmacies before their sale, and not to buy these pharmacies back for at least 10 years.

The CCPC has accepted the commitments made by LloydsPharmacy and approved the purchase. An independent monitoring trustee will be appointed to make sure it complies with the commitments.

Colin Gleeson

Colin Gleeson

Colin Gleeson is an Irish Times reporter

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