1. News
July 31, 2016

Lloyds Pharmacy to sell 12 UK pharmacy stores to complete acquisition deal with Sainsbury’s

The UK Competition and Markets Authority has conditionally approved Lloyds Pharmacy’s deal to acquire Sainsbury’s pharmacies.

The UK Competition and Markets Authority has conditionally approved Lloyds Pharmacy’s deal to acquire Sainsbury’s pharmacies.

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A subsidiary of Celesio, Lloyds Pharmacy is required to sell pharmacy stores in 12 areas of England and Wales as part of its takeover.

Operating around 1,540 pharmacies in the UK, Lloyds Pharmacy agreed to acquire Sainsbury’s pharmacy business in a £125m deal last year. The deal will see the former acquire 281 pharmacies, including 277 in-store pharmacies and four located in hospitals.

All 277 stores are planned to be rebranded as Lloyds Pharmacy upon completion of the deal.

The new conditions come as the inquiry group of independent panel members found that the merger could lead to a substantial lessening of competition (SLC) at these 12 areas as the two companies' pharmacies are such close competitors.

“We can ensure that customers do not lose out from this deal.”

CMA inquiry chair Simon Polito said: “Since pharmacies’ total revenue is largely dependent on the number of prescriptions issued, they have an incentive to attract additional customers, who we’ve found are prepared to switch between the two companies’ pharmacies, particularly when they are near to each other in a local area."

The pharmacies will be sold to a new owner with approval from the CMA in order to maintain the current level of competition for local customers.

Polito added: “By selling the Lloyds pharmacy in those areas to a new owner with the relevant expertise and the incentive to attract customers through its service quality, we can ensure that customers do not lose out from this deal.”

It is reported that the pharmacies to be sold are not permitted to be closed by Celesio.


Image: Lloyds Pharmacy has 1,540 pharmacies in the UK. Photo: courtesy of Celesio.

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What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
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