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OFT refers proposed acquisition by AAH Pharmaceuticals Limited of East Anglian Pharmaceuticals Limited

PN 157/03    3 December 2003

The OFT today referred the proposed acquisition by AAH Pharmaceuticals Limited of East Anglian Pharmaceuticals Limited to the Competition Commission (CC).

The OFT believes that if the merger went ahead it might be expected to result in a substantial lessening of competition in the supply of pharmaceutical products to dispensing doctors, retail pharmacies and hospitals in the East Anglia region extending also to parts of the East Midlands and South East England.

Penny Boys, Executive Director of the OFT, said: 'There is a significant concern that the merger will result in a reduction of choice for dispensing doctors, retail pharmacies and hospitals in East Anglia.  Further investigation is required in order to assess the effectiveness of competition from other pharmaceutical suppliers who operate in the relevant area.'

The CC is required to publish its report by 19 May 2004.

NOTES

1. The Enterprise Act 2002 empowers the Office of Fair Trading to refer to the CC actual or proposed mergers for investigation and report which create or enhance a 25 per cent share of supply in the UK (or a substantial part thereof) or which involve the acquisition of turnover in the UK of over £70m.

2. The CC may extend the 24 week period within which it is required to publish its report by no more than eight weeks if it considers that there are special reasons why the report cannot be published within that period.

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