CDC Pharmaceuticals and Pharmacy Wholesalers to merge

CDC Pharmaceuticals and Pharmacy Wholesalers (Central) seek clearance to merge

The Commerce Commission has received a joint application from CDC Pharmaceuticals Limited and Pharmacy Wholesalers (Central) Limited (PWL Central) seeking clearance to merge their respective businesses.

Both CDC and PWL Central wholesale prescription and over the counter pharmaceutical products to pharmacies and hospitals. At present, CDC primarily supplies pharmaceuticals in the South Island and in Wellington while PWL Central primarily supplies pharmaceuticals in the central North Island. Both parties also have a presence in Auckland.

A public version of the application will be available shortly on our Clearances Register

Background

Assessing an application for a merger or acquisition

When considering a proposed merger (or amalgamation), the Commission must decide whether the competition that is lost in a market when two businesses merge is substantial. We will give clearance to a proposed merger only if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.

A fact sheet explaining how the Commission assesses a merger application is available athttp://www.comcom.govt.nz/business-competition/mergers-and-acquisitions/clearances/

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