The CMA also recently investigated Celesio in relation to its proposed acquisition of Sainsbury’s pharmacies. Celesio operates over 1,500 pharmacies within the UK, while Sainsbury’s operates 277.

The CMA identified that if the proposed acquisition was to proceed, there was a realistic prospect that customers in 78 local areas may be affected by a loss of competition. The CMA also stated that additional local areas may be affected by the acquisition, affecting the pricing of products and narrowing the range of products available.

The CMA has highlighted that pharmacies also compete in relation to numerous other factors such as quality of advice, the scope of medications available, and opening and closing times of business.

The proposed acquisition was due to be subject to an ‘in-depth phase 2 investigation’ by an independent panel, where the parties would be given an opportunity to argue that the proposed acquisition would not result in a loss of competition.