UPDATED: Competition watchdog probes Pharmacy2U purchase of LloydsDirect

The competition authority is looking into the “assets merger” of Pharmacy2U and LloydsDirect, the UK’s two largest online pharmacies, it has revealed.

breaking
C+D reported last month that Pharmacy2U had bought LloydsDirect for an undisclosed sum

The Competition and Markets Authority (CMA) is investigating Pharmacy2U’s acquisition of LloydsDirect, it announced today (November 30).

According to the CMA, it served initial enforcement orders on Pharmacy2U, LloydsDirect, P2U Holdings Limited, G Square Capital II L.P. and G Square Healthcare Private Equity LLP earlier this week (November 28).

The enforcement order said that the CMA is considering…whether [the merger] has resulted or may be expected to result in a substantial lessening of competition in any market or markets in the United Kingdom”.

Read more: UPDATED: Pharmacy2U buys LloydsDirect for undisclosed sum

It said that the two companies must not “take any action” that might lead to the “integration” of the businesses, transfer ownership or control of either business, or make any changes to “key staff” unless they have the “prior written consent of the CMA”.

The businesses must be “carried on separately” with “separate sales or brand identity” and no “business secrets, know-how, commercially-sensitive information, intellectual property or any other information of a confidential or proprietary nature…shall pass directly or indirectly” between them “except where strictly necessary”, it added.

The CMA said that it has not yet “formally” begun its “phase 1 investigation” and that both the launch of its “assets merger inquiry” and the deadline for its “phase 1 decision” are yet to be confirmed.

It encouraged interested parties to submit “written representations” about issues related to competition or in the public interest to Pharmacy2ULloydsdirect@cma.gov.uk

Pharmacy2U "confident"

A Pharmacy2U spokesperson told C+D that both Pharmacy2U and LloydsDirect “will fully collaborate with the CMA throughout the process and are confident that the CMA will decide to approve this transaction”.

They added that the two brands will “run independently” until it “[receives] approval from the regulator”.

“We are committed to continuity and service excellence and our focus is on looking after our patients and our people,” they said.

C+D also approached LloydsDirect for comment.

Read more: ‘A natural fit’: Pharmacy2U joins CCA following LloydsDirect takeover

C+D reported last month that Pharmacy2U had bought LloydsDirect for an undisclosed sum

And the Company Chemists’ Association (CCA) announced days later that Pharmacy2U had joined its ranks.

According to NHS Business Services Authority (NHSBSA) data hosted on PharmData, Pharmacy2U and LloydsDirect were the top two pharmacies for items dispensed in August 2023, with Pharmacy2U dispensing 1.6 million items and LloydsDirect dispensing 1.1 million items. 

Sign in or register for free

James Stent

Read more by James Stent

James Stent joined C+D as a digital reporter in May 2023 from the South African human rights news agency GroundUp, where he was senior reporter and consultant editor.

Latest from News

NHSE mulls pharmacy HPV vaccine rollout

 
• By 
 • comment

NHS England (NHSE) has suggested that community pharmacies should offer HPV vaccinations to “raise awareness” and increase uptake of the jab.

All the headlines: Community pharmacy funding deal

 
• By 
 • comment

Find out everything you need to know about the government’s plans for community pharmacy – as outlined in this week’s long-awaited pharmacy funding deal.

Pharmacy stop-smoking service expands to ‘non-registered’ staff

 
• By 
 • comment

The new pharmacy contract has expanded who can deliver the smoking cessation service, as well as adding the provision of two drugs via PGDs.

More from Business

exclusive

Revealed: Pharmacy weight loss consultations rocket twenty-fold

 
• By 
 • comment

Consultation numbers for a pharmacy service provider’s weight management service have grown “exponentially” in the last year, C+D has learned.

Pharmacist MPs and minister vote down NICs hike exemption

 
• By 
 • comment

The pharmacy minister and pharmacist MPs Sadik Al-Hassan and Taiwo Owatemi have all voted against exempting pharmacies from the upcoming national insurance hike.