Boots Alliance deemed fair
The proposed merger of Boots and Alliance UniChem will not be referred to the Competition Commission by the Office of Fair Trading for further scrutiny.
The decision is subject to both parties agreeing to take measures — including
the sale of certain pharmacies — to address concerns in around
100 regions where competition could be affected.
OFT chief executive John Fingleton said that there are many regulations
that prevent suitable competition in the community pharmacy sector, and
he called on the Government to reconsider how these regulations might
prevent consumers from benefiting from the mercantile savings of such
a merger.
Boots shares rise Boots shares rose before the announcement because
of rumours that a number of private equity companies had appointed
a merchant bank to advise on a possible rival takeover bid for Boots
Group Plc.
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