A fast-track Phase 1 investigation by the Competition and Markets Authority (CMA) has confirmed that the purchase of independent pharmacy owner Lexon UK Holdings Limited (Lexon) by pharmacy chain operator Bestway Panacea Holdings Limited (Bestway) would raise competition concerns in several local areas.
Bestway operates approximately 750 pharmacies nationwide in the UK under the Well brand. In April 2023, it completed its acquisition of Lexon, which operates 46 pharmacies in the UK under the Knights Pharmacy brand, and Asurex, a wholesale perfume supplier.
The CMA's investigation found that the merger could lead to a significant lessening of competition between retail pharmacies in 12 local areas located in Liverpool and North East England.
The merging businesses conceded that the deal raises competition concerns in these areas and have submitted proposals to sell pharmacies within these areas to restore the competition that would otherwise be lost as a result of the deal.
Colin Raftery, CMA Senior Director of Mergers, said:
"Pharmacies are essential public health services, and it's vital that the loss of competition brought about by a deal like this shouldn't leave people with reduced choice or worse services when they need medical support.
"The CMA will now carefully consider whether the remedy put forward by Bestway will address our concerns and ensure that customers in the affected areas continue to have access to good quality chemists."
