The Competition and Markets Authority has said today (July 27) that it is prepared to sign off on Well Pharmacy’s takeover of Lexon UK after the former offered to sell seven of its own branches to assuage competition concerns.

The CMA launched an inquiry in May following Well Pharmacy parent company Bestway’s acquisition of Lexon’s wholesaler business and 46 community pharmacies, with the watchdog concerned there could be a “significant lessening of competition” between pharmacies in 12 local areas in Liverpool and the North East of England.

In response, on June 15 Bestway offered to divest seven Well Pharmacy stores and proposed upfront buyers for each of them, namely: 

• Teesside LLP, trading as Riverside Pharmacy, as upfront buyer of Well Seaham
• HA Healthcare Ltd as the upfront buyer of Well Bishop Auckland
• Gorgemead Limited, trading as Cohens Chemist, as the upfront buyer of Well Moreton and Well Pensby
• SK Pharmacare Limited as the upfront buyer of Well High Howdon
• Alrahi & Singh Limited as the upfront buyer of Well Kenton
• Pyramid Pharma 7 Ltd as the upfront buyer of Well Stockton-on-Tees.

Well has entered into agreements with each of these proposed purchasers. In a statement this morning, the CMA confirmed that it believes the offer from Bestway “will resolve the SLC… in a clear-cut manner,” adding that it “currently does not have material doubts about the overall effectiveness of the proposed undertakings about their implementations”. 

“The evidence available to the CMA indicates that the Upfront Buyers and all other related entities are independent of the parties and do not have any significant connection to the parties that may compromise their incentives to compete with the parties,” it added.

The CMA said it “proposes to accept” the offer instead of carrying out a phase 2 investigation but must hold a public consultation before reaching a final decision. The deadline for comments from interested parties is August 11.

Bestway Healthcare CEO Seb Hobbs told Pharmacy Network News: “As we’ve always said, choice and competition are an essential part of making sure people get the best deal from their community pharmacies. 

“The CMA is now consulting on our proposed divestments, and we continue to work collaboratively with them as part of that process. All pharmacies identified for potential divestment continue to operate as normal and are receiving our full support."