Competition authorities are to carry out a full phase-two investigation into the acquisition of TouchStore by healthcare services provider Uniphar.
The scrunity of the deal is the first time the Competition and Consumer Protection Commission (CCPC) has called on powers it was granted almost three years ago to review a takeover that would otherwise have fallen below the normal threshold for examination. That is set at a combined turnover of €60 million or more and where each has revenues of €10 million or higher.
However, under the Competition (Amendment) Act 2022, which came into effect in September 2023, competition authorities may call in below-threshold mergers that could impact competition.
The pharmacy wholesale and retail giant announced in January that it had bought Limerick-based software business TouchStore, which sells dispensing and retail management software to pharmacies across the State.
Uniphar already owns brands such as Allcare Pharmacy, Hickey’s Pharmacy and McCauley Health and Beauty.
In March, it emerged that the CCPC planned to look more closely at the merger, with Uniphar formally notifying the commission of the deal on April 27th,
“Following a preliminary examination, the CCPC has decided an in-depth investigation is needed to establish whether the proposed transaction will result in a substantial lessening of competition in Ireland,” the CCPC said in a statement.
The transaction was completed before the notification, but interim measures imposed by the CCPC mean the two parties continue to operate independently until the review is completed.
In a statement, Uniphar said it had been “actively engaging with the CCPC throughout its review process to date and will continue to do so as part of the Phase 2 investigation.”
“Uniphar has also agreed with the CCPC that it may proceed to migrate its 134 owned Hickey’s, McCauleys and Allcare stores to the Touchstore platform while the CCPC concludes its review.” it added.
“TouchStore continues to operate as a separate legal entity with its existing management and support teams in place and appropriate data segregation safeguards, to ensure the confidence of existing and future customers,” Uniphar said, adding it is “confident” that deal is “pro-competitive and will realise significant benefits for Irish community pharmacies”.