This site is intended for Healthcare Professionals only

Merger of LloydsDirect into P2U a step closer as CMA order lifted

Business news

Merger of LloydsDirect into P2U a step closer as CMA order lifted

The UK competition watchdog has lifted an order that prohibited the integration of LloydsDirect into Pharmacy2U, bringing the merger of the two companies a step closer. 

The Competition and Markets Authority (CMA) announced yesterday (February 12), that it had revoked an enforcement order that barred Pharmacy2U and LloydsDirect from taking any steps that would stop the two companies from acting as separate entities, such as rebranding LloydsDIrect under the Pharmacy2U banner. 

The enforcement order was put into effect on January 24 after concerns were raised that Pharmacy2U’s acquisition of its closest competitor – which now trades as Metabolic Healthcare – could lead to a lessening of competition in the UK’s distance dispensing market. 

The CMA stressed that it had not yet taken a final decision as to whether the merger could lead to a substantial lessening of competition in the market, but said it “nevertheless considers that, based on the evidence it has received in its assessment of the merger to date, it is appropriate to revoke the initial order”.

A Pharmacy2U spokesperson told P3pharmacy: “The CMA has fully revoked its IEO in line with its policy to do so when it has reached the provisional view that the transaction under review does not give rise to competition concerns. We await the CMA’s final decision by 19 March. All business as usual until then.”

The acquisition was first announced last November. Pharmacy2U has chosen not to reveal how much it spent on the deal. 

In October 2023, Pharmacy2U dispensed 1.6 million items and LloydsDirect 1.15 million items, placing them some distance ahead of any competitors. dispensed 120,804 items in October and Chemist4U 78,775 items.

Copy Link copy link button

Business news