Transaction protects competition for pharmacy services
OTTAWA, June 9, 2017 /CNW/ - The Competition Bureau approves Rx Drug Mart Inc. (RXDM) as the buyer of 27 Rexall Pharmacy Group Ltd. (Rexall) retail pharmacies in Alberta, British Columbia, the Northwest Territories, Ontario and Saskatchewan.
In December 2016, the Bureau had determined that McKesson's acquisition of Rexall would have resulted in a likely substantial lessening or prevention of competition in the market for wholesale and retail sale of certain pharmacy products and services, including prescription and over‑the‑counter pharmaceuticals. The concern was addressed through a consent agreement with the Bureau, whereby McKesson agreed to sell 27 Rexall's retail pharmacies in 26 communities across Canada.
Following a review, the Bureau concluded that RXDM has the managerial, operational and financial capacity to compete effectively in the 26 communities. RXDM is an independent operator of retail pharmacies across Canada. RXDM does not currently operate in any of the 26 communities.
Ownership of the 27 pharmacies will be transferred from McKesson to RXDM on a rolling basis between mid-June and August 31, 2017.
- The Rexall retail stores to be sold off are located in:
- Alberta: Athabasca; Banff; Barrhead; Blairmore; Fort MacLeod; High Prairie (2 locations); Jasper;
- British Columbia; Burns Lake; Ladysmith; Sechelt; Vanderhoof;
- the Northwest Territories: Inuvik;
- Ontario: Campbellford; Deep River; Durham; Englehart; Iroquois Falls; Lindsay; Sioux Lookout; Smithville; Stayner ; Sturgeon Falls; Wingham; and
- Saskatchewan: Kamsack; Moosomin; Shaunavon.
- In addition, the consent agreement required McKesson to establish a series of firewalls restricting the transmission of commercially sensitive information between McKesson's wholesale business and the Rexall retail pharmacy and claims adjudication businesses.
- The Competition Bureau will also be reviewing McKesson Canada's planned acquisition of Uniprix.
- Competition is a key driver of innovation and allows Canadians to benefit from lower prices, greater product choice and higher quality services.
The consent agreement is available on the Competition Tribunal website.
The Competition Bureau, as an independent law enforcement agency, ensures that Canadian businesses and consumers prosper in a competitive and innovative marketplace.
SOURCE Competition Bureau
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