Vj-141/1999/63
UTA PHARMA BETEILIGUNGS GMBH / WESTPHARMA PHARMACEUTICAL TRADING LTD, CIRRUS INVESTMENT LTD AND QUADRON TRADING AND SERVICING LTD
(Concentration)
On the market of drug retailing the German undertaking, UTA PHARMA Beteiligungs GmbH (hereinafter: UTA) and the undertakings in its ownership, operating in Hungary, Dr. Varius, and Pharma-Cor as well as pharmacies, controlled by them, furthermore, the UTA Pharma Hungária, fully owned by UTA, planned an acquisition of control to which UTA applied for an authorisation of the Office of Economic Competition. The parties, coming under control, are the retail business of Westpharma, controlling 12 pharmaceutical limited partnerships as well as other pharmaceutical limited partnerships controlled by Cirrus Ltd and Quadron Ltd.
The aim of the transaction is to get more favourable conditions in contracts and purchasing price for pharmacies at their suppliers.
The planned acquisition was obliged of applying for authorisation since the joint turnover of the relevant undertakings exceeded the threshold provided by the Competition Act.
The undertakings concerned have almost 8 per cent joint market share on the national market of drug retailing; however, the pharmacies on the ownership side are concentrated in five separated regions. In four of these five regions there are only pharmacies under the control of Westpharma therefore the planned transaction does not affect the concentration. On the market of the fifth region, however, one UTA pharmacy is also operating beside the pharmacies of Westpharma but the joint market share does not increase to an extent that would arise the risk of creating a dominant market position.
The Competition Council authorised the planned acquisition of control where it took into consideration also the circumstance that wholesale activities of Westpharma are under separate control from its retail activities.
February 11, 2000. Budapest
Fógel Jánosné dr. sk. előadó
dr. Bodócsi András sk.
dr. Sólyom Eszter sk.
Ágoston Marika