The ACCC will not oppose the proposed acquisition of
API is a retailer and wholesaler of pharmaceutical and beauty & personal care products. It owns the Priceline retail business and is the franchisor for, and distributes products to, independently owned Priceline Pharmacies. API also owns the
The ACCC's review primarily focused on the markets for the retail sale of over-the-counter pharmaceutical and beauty & personal care products.
"Our investigation showed that there are many large and well-established retailers, including
"We consider that API's competitors will continue to compete strongly with
The ACCC also considered the potential effects on competition of
The investigation focused on whether the proposed acquisition would reduce competition by incentivising and locking customers into shopping at
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"We also consider the benefits obtained from the additional customer transaction data do not appear to be so strong as to result in a substantial lessening of competition from the acquisition."
"Customers generally do not only join one loyalty scheme, and major competitors to
The ACCC consulted a wide range of stakeholders during the investigation. Most did not have any concerns and noted that the relevant markets have a large number of suppliers and retailers.
A small number of industry participants raised some competition concerns about the acquisition. After considering these concerns, the ACCC maintained its view that the proposed acquisition would not have the effect or likely effect of substantially lessening competition.
The ACCC also notes that
More information can be found on the ACCC's website at
Notes to editors
In considering the proposed acquisition, the ACCC applies the legal test set out in section 50 of the Competition and Consumer Act. In general terms, section 50 prohibits acquisitions that would have the effect, or be likely to have the effect, of substantially lessening competition in any market.
Other matters relating to pharmacies are regulated by a range of specialty regulators. A list of regulators in the industry can be found on the Pharmacy Board of
Background
Over-the-counter pharmaceutical products include, for example, pain management and cold and flu products, and exclude prescription-only products.
Beauty & personal care products include products such as skin care, cosmetics, fragrances and dietary supplements.
Prior to
Use this form to make a general enquiry. Media enquiries: Media Team - 1300 138 917, media@accc.gov.au
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