The Competition Commission of South Africa (CCSA) reports on approved mergers in the pharmaceutical sector.
1 Dis-Chem Distribution / KZN Warehouse and CT Distribution Centre (CTDC)
The Commission has recommended that the Tribunal approve the proposed transaction whereby Dis-Chem Distribution intends to acquire KZN Warehouse and CTDC, without conditions. The Dis-Chem Group is active along the pharmaceutical supply chain ranging from wholesale distribution, logistics, and online stores to the operation of retail pharmacies.
Dis-Chem Group conducts wholesale distribution of unscheduled pharmaceutical products, operates an online store as well as a courier pharmacy business, which dispenses and delivers over-the-counter drugs, prescription medicine and front shop items to customers who prefer to order on its website. Dis-Chem Group also operates a national chain of pharmacy stores located in the major metropolitan areas and suburbs in South Africa.
CTDC owns an office distribution centre in Stikland, Cape Town. KZN Warehouse owns a warehouse complex in New Germany, KwaZulu-Natal.
The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant market. The Commission further found that the proposed transaction does not raise any public interest concerns
2 Karo Pharma / The E45 Skincare Brand and Assets of Reckitt Benckiser Limited (Target Business)
The Commission has unconditionally approved the proposed merger whereby Karo Pharma intends to acquire the Target Business. In South Africa, Karo Pharma and its subsidiaries supply skin care products under the Locobase and Ultrabase brands, as well as products through global brands such as Cetaphil, Proactiv and Benzac. Skin care products are used to moisturize skin, address skin sensitivity or conditions such as dryness or eczema. Globally, including in South Africa, the Target Business provides skin care products. In South Africa, these are the creams and lotions of the E45 Skincare line.
The Commission found that the proposed transaction would not limit competition or violate the public interest.
Source: Conpcom.co.za
