Green light for Alpha Pharm merger

THE Competition Commission has approved the merger of the Alpha Pharm group of regional pharmaceutical distributors into a single national company, Alpha Pharm.

Fin24, 10 December 2014

This decision follows a near unanimous vote by shareholders of APKZN, Apec and Kemco to merge their companies and accept an offer from a Swiss investment company, Shogun Holdings und Finanz, for 51 percent of the issued shares in the new company. Alpha Pharm said in a statement that the formation of the national company is a major boost for the 900 independent community pharmacies that own 49 percent of the new shares and for the community pharmacy sector as a whole.

It said the new Alpha Pharm will put all its energies into ensuring that its pharmacies compete in a market increasingly dominated by major retail chains. As well as a large presence in the retail market the company also produces a range of products exclusive to Alpha Pharm pharmacies. Lynton Lomas, Shogun SA partner, believes community pharmacists make a critical contribution to South Africans who cannot access a large pharmacy in a big city. He said the investment of R350m by Shogun will provide additional working capital to ensure that the essential services provided by the pharmacies are enhanced to the benefit of South Africans, particularly those who are disadvantaged when it comes to healthcare.