Uniphar's proposed acquisition of NaviCorp has been blocked by the Competition and Consumer Protection Commission over competition concerns.
The healthcare services group said its planned multi-million euro purchase of the pharmacy business would "no longer proceed to completion" after the CCPC decision, the first acquisition blocked by competition authority since 2012.
The regulator said in a statement that the proposed acquisition, agreed in December 2021, would "substantially lessen competition in markets for services in the state."
The deal would have seen Uniphar take control of NaviCorp and its subsidiaries Thera Pharmaceuticals Limited, CarePlus Pharmacy DAC, TouchPlus Technologies Ltd, and Pembroke Healthcare Ltd.
The CCPC reached the conclusion that the deal, if allowed to go ahead, would less competition in the provision of buying group services and the provision of common management and branding services in Ireland.
In Association with
Reacting to the CCPC decision, Uniphar stated: "Following the proposal to acquire Navi, which was announced on 23 December 2021, both Uniphar and Navi have 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. Navi has been a longstanding partner of Uniphar and both parties will continue to work closely together to support our shared customer base of independent community pharmacies."
Uniphar reported revenues of €1.9bn and profit before tax of €50.4m last year as it announced four acquisitions, excluding NaviCorp: Germany medical device commercialisation firm CoRRect Medical GmbH, New York medical affairs services outsorcer BESTMSLs, UK-based pharma communications company E4H, and medicines provider Devonshire Healthcare Services.
The group also acquired Hickey's Pharmacy Group, RRD International, Diligent Health Solutions, and Innerstrength in 2020, and said it had seen "expected benefits" from their integration last year. Shares in Uniphar fell by 4.9% in early trading today.
Turnover at NaviCorp came to €33.4m in 2021, with the company delivering an operating profit of €6.3m, up from €1.1m a year earlier.
(Pic: Getty Images)
