Shares in healthcare services group Uniphar dropped after its proposed acquisition of pharmacy supply group Navi was blocked by the Competition and Consumer Protection Commission.
In a statement, Uniphar said it will continue to work closely with Navi Group, despite the CCPC's decision.
The takeover was first announced almost a year ago.
The Competition and Consumer Protection Commission yesterday prohibited the sale, saying it would substantially lessen competition in the market.
Uniphar said that both it and Navi had engaged extensively with the CCPC and supported them in their review of the proposed transaction.
"However, the transaction will now no longer proceed to completion," it added.
The CCPC in April had opened 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.
The CCPC said last night 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 can be appealed to the High Court within 40 working days.
The Uniphar-Navi deal is the first time 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.
Shares in the company were lower in Dublin trade today.
