The competition regulator has blocked a proposed takeover by healthcare services provider Uniphar of pharmacy solutions business Navi Group.
The Competition and Consumer Protection Commission (CCPC) said the planned acquisition would substantially lessen competition in markets for such services here.
It is the first time that the CCPC has prevented a deal from proceeding since it was set up in 2014 through the amalgamation of the Competition Authority and the National Consumer Agency.
Prior to that it was 2008 when the Competition Authority last blocked a deal.
However, mergers have sometimes been abandoned prior to a formal decision, after parties involved see the assessment from the regulator.
Uniphar's deal to buy Navi Group was announced last December and included its wholly-owned subsidiaries Thera Pharmaceuticals Limited, CarePlus Pharmacy DAC, TouchPlus Technologies Limited, and Pembroke Healthcare Limited.
At the time Uniphar said it would help it to deliver an even stronger offering to its independent community pharmacy customer base.
However, in April the CCPC said it was opening a full phase 2 investigation to establish if the proposed transaction could lead to a substantial lessening of competition in the state.
It subsequently issued an assessment to both parties in the deal.
This evening, the CCPC said it had concluded that the takeover could not proceed because it would lessen competition in the market for the provision of buying group services in the State.
These are businesses or groups who negotiate, on behalf of their member pharmacies, discounts and supply terms with multiple suppliers of pharmaceutical products including manufacturers and wholesalers.
It also said competition for the provision of common management and branding services would be reduced.
These are services provided by pharmacy symbol or franchise groups and include common branding.
They may also include services such as store design, marketing, business intelligence and reporting, procurement, HR management, IT management and accounting.
The decision, which will come as a blow to both firms, can be appealed to the High Court within 40 working days.
