Anticipated acquisition by Boots Group plc of Alliance Unichem plc

Affected market: Pharmacies

14 March 2006

Notice of proposed undertaking under Paragraph 2(1) Schedule 10 of the Enterprise Act 2002.

The OFT announced on 7 February 2006 its decision that the anticipated acquisition by Boots Group plc (Boots) of Alliance UniChem plc (AU) will not be referred to the Competition Commission under section 33 of the Enterprise Act 2002 because the OFT is considering whether, instead of making a reference, to accept appropriate undertakings from Boots to address the competition concerns arising from the merger.

The OFT believes that it is or may be the case that the transaction may be expected to result in a substantial lessening of competition in relation to the supply of retail pharmacy services in certain localities in the UK.

The acquisition of AU has raised the realistic prospect of a substantial lessening of competition (SLC) in a number of local areas where the merger removes competition within a one mile radius. There may also be an SLC where the number of pharmacy fascia is reduced from three to two within a one mile radius.

Boots has offered to give undertakings to divest either a Boots or AU pharmacy in each of the areas as detailed in the proposed undertakings (see below).

The OFT considers that the proposed undertakings offered by Boots are, in the circumstances of this case, appropriate to remedy, mitigate or prevent the competition concern identified in its decision of 6 February 2006 and is minded to accept these undertakings. 

Before reaching any final decision as to whether to accept the proposed undertakings, interested parties are invited to make their views known.  Representations should be made in writing to the Office of Fair Trading by  29 March 2006 and be addressed to:

Download proposed undertakings (pdf 94 kb).

Download Annexe A (pdf 16 kb).

Representations should be addressed and sent to
David Blocksidge
Mergers Branch
Office of Fair Trading
Fleetbank House
2-6 Salisbury Square
London
EC4Y 8JX

Telephone: 020 7211 8933
Email: david.blocksidge@oft.gsi.gov.uk

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