Lloyds Pharmacy makes second attempt to acquire McCabes Pharmacy

Competition authority had put the brakes on the acquisition, ruling it was 'invalid'

Sharon McCabe, chief executive of McCabes Pharmacy.

Lloyds Pharmacy owner, PHX Ireland, will once again try to complete its proposed acquisition of McCabes Pharmacy after its previous attempt was ruled invalid by the competition authority.

In October last year, PHX Ireland, which is a part of the German-based Phoenix Group, agreed to acquire McCabes Pharmacy in a deal which would create a chain of 113 stores countrywide. The deal would mean the two retail entities would merge their operations and trade under the McCabes brand.

The new single operation was to be run by Sharon McCabe — who has been chief executive of McCabes Pharmacy since 1999.

However, the Competiton and Consumer Protection Commission (CCPC) put the brakes on the acquisition, ruling it was “invalid”.

During the CCPC’s phase one investigation into the acquisition, the authority issued both the Phoenix Group and McCabes a ‘Requirement for Information’ (RFI). This meant  both parties had to supply the CCPC with additional information in relation to the takeover.

After reviewing the responses and further engagement with both companies, the CCPC decided it was not satisfied with the RFIs issued and it was of the opinion the “specified information requested in an RFI has not been provided”.

As a result, the CCPC deemed the merger notification as “invalid”. The CCPC wrote to both companies to explain its reasoning and its willingness to engage further on the proposed acquisition.

On Friday, the CCPC was again notified about the intended acquisition and plans to begin phase one of its investigation all over again.

Lloyds Pharmacy operates 82 retail stores across Ireland, while McCabes Pharmacy has 31 stores primarily located in the Dublin and Leinster region.