Bestway snapped up "family-owned" Lexon UK, which operates 46 UK pharmacies under the Knights Pharmacy brand, in April as part of a deal that also encompassed Lexon’s wholesaling business and the perfume wholesaler Asurex.
Bestway itself operates approximately 750 pharmacies nationwide in the UK under the Well Pharmacy brand.
Last week, the Competition and Markets Authority (CMA) announced that the merger had raised competition concerns in several areas around England.
Read more: Well parent company’s merger with Lexon sparks competition concerns
It said at the time that the merging businesses had submitted proposals to sell off some pharmacies in the affected areas after conceding that “the deal raises competition concerns” in those locales, but it was unclear how many pharmacies could be sold under the proposals or which of the pharmacy chains could be affected.
Now the CMA has revealed that the proposals offered by Bestway involve the divestment of “seven pharmacy stores”.
“Reasonable” chance CMA will accept proposals
In an update published this week (June 20), it said that “Bestway Panacea Holdings Limited offered undertakings to the CMA, which involve divesting seven pharmacy stores”.
The CMA said it would “consider” the proposal, adding that “it considers that there are reasonable grounds for believing that the undertakings offered by Bestway, or a modified version of them, might be accepted by the CMA under the Enterprise Act 2002”.
However, it remains unclear which seven pharmacies could be divested and when.
Read more: UPDATED: Well Pharmacy acquires wholesaling businesses Lexon UK and Asurex
Last week, the CMA said that a “fast track” probe had raised concerns that the deal “could lead to a significant lessening of competition between retail pharmacies” in 12 areas in Liverpool and the northeast of England.
At the time of the merger, the companies said they had “proactively engaged with the CMA in pre-notification discussions and look forward to continuing to do so productively during the CMA review period”.
