29th Dec 2015 12:43
LONDON (Alliance News) - The UK Competition and Markets Authority on Tuesday said it has decided not to accept undertakings given by Celesio AG in respect of its proposed acquisition of J Sainsbury PLC's pharmacy business.
The acquisition will therefore be referred to a Phase 2 investigation.
Sainsbury's agreed to sell its pharmacy business to Celesio for GBP125 million in July. Under the deal, Lloyds Pharmacy Ltd, which is owned by Celesio, would buy 281 pharmacies in total, including 277 in-store locations and four located in hospitals, to be re-branded under Lloyds Pharmacy.
Earlier this month, the CMA had ruled that the acquisition may result in a "substantial" lessening of competition in the UK.
Shares in Sainsbury's were trading down 0.6% at 264.80 pence on Tuesday afternoon.
By Karolina Kaminska; [email protected] @KarolinaAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Sainsbury's