German firm rejects chemist shop deal

A German pharmaceutical group tonight pulled out of a deal to buy a 30-strong chain of chemist shops in Ireland.

The Gehe company said it was scrapping plans to acquire the nationwide Unicare pharmacies after a decision by the Government to deregulate the sector, a move which has effectively lifted a long-running barrier to the opening of new shops.

If the €120m takeover had gone ahead, Gehe, who have also bought other chains of chemists and own a leading pharmaceutical wholesaler in Ireland, would have become the the country’s biggest pharmacy group.

It is reckoned the regulatory changes, which have been opposed by the Irish Pharamceutical Union, could have undermined the value of the deal for Gehe, who have a turnover of more than €14.7bn and employ 28,000 across Europe.

In a statement, the German company said the situation brought about by the government action was ‘‘unsatisfactory and frustrating.’’

Unicare said they were studying the position and had no immediate comment to make.