Merger Update: Bestway / Lexon

CMA invites comments on pharmacy merger remedy:

The Competition and Markets Authority (CMA) has opened a consultation on undertakings proposed by Bestway Panacea Holdings Limited (referred to as Well) to address competition concerns over its acquisition of Lexon UK Holdings Limited (Lexon) and Asurex Limited.

On 15 June 2023, the CMA announced its finding that the acquisition gives rise to a realistic prospect of a substantial lessening of competition (SLC) in 12 local areas in the UK (SLC areas) and that it would refer the acquisition for an in-depth investigation unless Well offered acceptable undertakings to address the CMA's concerns.

To address the CMA's concerns, Well has offered to divest its own pharmacy stores in each of the SLC areas. Given there is some overlap between the SLC areas centred on Well pharmacies and the SLC areas centred on Lexon pharmacies, Well submitted that the divestment of 7 specific Well pharmacy stores would achieve a clear solution to the 12 SLCs identified.

On 20 June 2023, the CMA announced that it would look in detail at these undertakings. The CMA has until 24 August 2023 to consider whether to accept the undertakings, or a modified version of them. As part of this process, the CMA is now consulting publicly on whether the proposals are sufficient to address the CMA's competition concerns.

Before reaching a final decision, the CMA is therefore inviting interested parties to make their views known. The deadline for responses is 11 August 2023.

The consultation on the undertakings and all other information relating to this merger investigation can be found on the case page at https://www.gov.uk/cma-cases.