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MERGERS: AMO SR approved the merger of undertakings JUDr. Igor Koval, TOP Pharmex Rišňovce, spol. s r.o., and PHARMOS, a.s.
Content
On 5 August 2021 the Antimonopoly Office of the Slovak Republic, the Division of Concentrations, (hereafter “the Office”) approved a merger grounded in the acquisition of joint control by the undertakings JUDr. Igor Koval (hereafter "Igor Koval") and TOP Pharmex Rišňovce, spol. s r.o., Nitra (hereafter “TPR”) over the company PHARMOS, a.s., Nitra (hereafter “Pharmos”).
The undertaking Igor Koval, resp. companies belonging to an economic group controlled by this undertaking operate in the SR in the field of providing pharmaceutical care in public pharmacies to end customers and wholesale distribution of medical devices. In addition, it operates in the SR in the field of providing business consulting services and in the field of renting and operating its own or rented real estates.
An economic group, which includes the undertaking TPR is controlled by a natural person and it operates in the SR in the field of providing pharmaceutical care in public pharmacies to end customers. In addition, it operates in the field of providing business consulting services, provides brokerage activity in various fields, performs real estate activities and it operates medical facilities in the territory of the SR.
The company Pharmos operates in the SR in the field of wholesale distribution of drugs, wholesale distribution of medical devices, wholesale distribution of precursors in the territory of the SR, wholesale distribution of narcotics and psychotropic substances, operation of a medical facility in the territory of the SR and in the field of providing pharmaceutical care in public pharmacies to end customers in a manner described in the decision.
In assessing the impacts of the merger in question, the Office focused on areas, where the activities of merging parties overlap, i. e. the field of providing pharmaceutical care in public pharmacies and the field of wholesale distribution of medical devices. It also evaluated possible vertical interconnections between the parties resulting from the merger.
The Office assessed the impacts of the merger in the field of providing pharmaceutical care in public pharmacies in the SR, while taking into account also the alternative narrower geographical definition of a relevant market in this field. The Office did not identify any competition concerns arising from the merger for any of alternatives considered, and it was not necessary to close the issue of precise definition of a spatial market in this field.
Also in the area of wholesale distribution of medical devices, the Office did not identify any competition concerns due to the horizontal overlap of activities of the parties and it was not necessary to close the issue of precise definition of relevant markets in this field.
The Office also assessed possible vertical interconnections resulting from the merger, namely
The undertaking Igor Koval, resp. companies belonging to an economic group controlled by this undertaking operate in the SR in the field of providing pharmaceutical care in public pharmacies to end customers and wholesale distribution of medical devices. In addition, it operates in the SR in the field of providing business consulting services and in the field of renting and operating its own or rented real estates.
An economic group, which includes the undertaking TPR is controlled by a natural person and it operates in the SR in the field of providing pharmaceutical care in public pharmacies to end customers. In addition, it operates in the field of providing business consulting services, provides brokerage activity in various fields, performs real estate activities and it operates medical facilities in the territory of the SR.
The company Pharmos operates in the SR in the field of wholesale distribution of drugs, wholesale distribution of medical devices, wholesale distribution of precursors in the territory of the SR, wholesale distribution of narcotics and psychotropic substances, operation of a medical facility in the territory of the SR and in the field of providing pharmaceutical care in public pharmacies to end customers in a manner described in the decision.
In assessing the impacts of the merger in question, the Office focused on areas, where the activities of merging parties overlap, i. e. the field of providing pharmaceutical care in public pharmacies and the field of wholesale distribution of medical devices. It also evaluated possible vertical interconnections between the parties resulting from the merger.
The Office assessed the impacts of the merger in the field of providing pharmaceutical care in public pharmacies in the SR, while taking into account also the alternative narrower geographical definition of a relevant market in this field. The Office did not identify any competition concerns arising from the merger for any of alternatives considered, and it was not necessary to close the issue of precise definition of a spatial market in this field.
Also in the area of wholesale distribution of medical devices, the Office did not identify any competition concerns due to the horizontal overlap of activities of the parties and it was not necessary to close the issue of precise definition of relevant markets in this field.
The Office also assessed possible vertical interconnections resulting from the merger, namely
- the field of wholesale distribution of medical devices (Igor Koval's economic group and the company Pharmos) to public pharmacies, operated by all of the three merging parties, and
- the field of wholesale distribution of medicines (Pharmos) to public pharmacies, operated by all of the three merging parties.
In this regard, the Office took into account in particular the position of merging parties in the individual fields mentioned above, the position of their competitors in the fields mentioned above, the characteristics of services provided in the fields in question. With regard to the vertical interconnections in question, the Office came to the conclusion about the non-existence of competition concerns.
Based on documentation and information submitted to the Office, it came to the conclusion that the merger assessed is in line with the Article 11 Paragraph 1 of the Act on Protection of Competition, as it will not significantly impede an effective competition in relevant market, in particular as the result of creation or strengthening of dominant position.
The decision came into force on 6 August 2021.
Based on documentation and information submitted to the Office, it came to the conclusion that the merger assessed is in line with the Article 11 Paragraph 1 of the Act on Protection of Competition, as it will not significantly impede an effective competition in relevant market, in particular as the result of creation or strengthening of dominant position.
The decision came into force on 6 August 2021.