The Competition and Markets Authority (CMA) has fully revoked its initial enforcement order imposed on Pharmacy2U following its purchase of LloydsDirect, it announced yesterday (February 12).
According to the revocation order, the CMA has removed the conditions it imposed on the companies in November, “based on the evidence” it had received about the transaction thus far.
A Pharmacy2U spokesperson told C+D that the CMA’s decision to lift the enforcement order, put in place to stop the two companies from continuing to integrate, is “in line” with its policy if a transaction “does not give rise to competition concerns”.
Read more: CMA launches first phase inquiry into Pharmacy2U/LloydsDirect merger
The Pharmacy2U spokesperson added that while they wait for the CMA’s final decision, due on March 19, it would be “business as usual until then”.
While the order has been lifted, the CMA said in its notice that it “is continuing to conduct its assessment” whether Pharmacy2U’s purchase of LloydsDirect may “result in a substantial lessening of competition”.
Enforcement order removed
The CMA launched a phase one merger inquiry into Pharmacy2U’s purchase of LloydsDirect on January 23, announcing that it was accepting comments from “any interested party” regarding the transaction until February 6.
A Pharmacy2U spokesperson told C+D at the time that it was “confident that the CMA will decide to approve this transaction”.
In November, C+D reported the launch of the CMA probe and the imposition of the enforcement orders.
Read more: UPDATED: Competition watchdog probes Pharmacy2U purchase of LloydsDirect
The initial enforcement order directed the two companies not to “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 order said that 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”.
Two largest online pharmacies
The CMA’s investigation followed the October announcement of Pharmacy2U’s acquisition of Lloydspharmacy’s online prescription service for “an undisclosed sum”, in a deal that combined the country’s two highest-profile online pharmacy businesses.
According to NHS Business Services Authority (NHSBSA) data hosted on PharmData, Pharmacy2U and LloydsDirect were the top two pharmacies in the UK for items dispensed in October 2023, with Pharmacy2U dispensing 1.6 million items and LloydsDirect dispensing 1.15 million items.
