LloydsPharmacy's deal to buy McCabes Pharmacy has secured approval from the Competition and Consumer Protection Commission (CCPC).
The approval is, however, subject to some commitments involving the sale of two pharmacies in Lucan in Dublin.
LloydsPharmacy currently operates 82 pharmacies around the country and is owned by PHX Ireland, which is part of the PHOENIX Group.
McCabes Pharmacy, founded in 1981, is a group of 31 pharmacies mainly based in the Dublin and Leinster regions.
A CCPC investigation was set up to look at how the deal would affect levels of competition between pharmacies, including potential consequences for consumers, when the deal was first announced last October.
During the investigation, the CCPC said it 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 in Finnstown and McCabes Pharmacy in Griffeen Centre - to a buyer who will be approved by the CCPC.
LloydsPharmacy has 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 ten years.
The CCPC said it has accepted the commitments made by LloydsPharmacy and approved the purchase.
It added that an independent monitoring trustee will be appointed to make sure that LloydsPharmacy complies with the commitments.
Under the terms of the deal, the merged entity will trade under the McCabes brand and will be led by Sharon McCabe, the current CEO of McCabes.
It is understood that the expanded group will adopt the name of the smaller McCabes chain because it is considered a strong brand and also because the licence to use the LloydsPharmacy name is due to expire soon.
McCabes was founded in 1981 when Sharon McCabe's father, Roy, opened his first pharmacy in Malahide in Dublin.
In 2003 he sold the business to his four daughters, two of whom are pharmacists, four years after Sharon McCabe became CEO.
Also family owned, the PHOENIX group is a large European integrated healthcare provider.
Its operations include pharmaceutical wholesale, pharmacy retail and providing services for the pharmaceutical industry.
It recently completed the purchase of McKesson Europe, which includes wholesaler and distributor United Drug and nursing home service provider TCP Homecare.
During the Covid pandemic, PHX Ireland was the sole distributor of Covid-19 vaccines in Ireland.
