* Signing of a consent agreement with the Competition Bureau of Canada allowing the company to proceed with the acquisition of Rexall Health The consent agreement is available on the Competition Tribunal`s website. This statement summarizes the Competition Agency`s approach to reviewing the proposed transaction. It provides an overview of the Bureau`s conclusion that, in the absence of the consent agreement, the proposed transaction would likely have resulted in a significant reduction or prevention of competition, and summarizes how the consent agreement will address this likely harm to competition. In order to counter the likely significant reduction or prevention of competition resulting from the increased likelihood of coordinated effects on local retail markets, the consent agreement provides for a set of firewalls that restrict the transmission of commercially sensitive information, such as the commercially sensitive information described above, between McKesson`s wholesale businesses, rexall activities and ClaimSecure activities. Subject to strict waivers, the consent agreement ensures that the commercially sensitive information of each of the three companies within these companies is treated as confidential and is not disclosed to the other two companies. Readers are encouraged to consult the registered consent agreement for more details on how these firewalls work. Under an agreement with the Competition Bureau, McKesson will also limit the exchange of “commercially sensitive information” between its wholesale stores and Rexall retail stores in order to maintain competition at the retail level. The remedies sought by the Bureau under the consent agreement can be divided into two broad categories: structural and behavioural. Consent Agreement to Sell Rexall Health to McKesson Under the terms of the Consent Agreement, McKesson is required to sell Rexall retail pharmacies in 26 markets in Alberta, British Columbia, the Northwest Territories, Ontario and Saskatchewan. Specific communities are listed below. McKesson will limit the transmission of commercially sensitive information between its wholesale business and Rexall`s retail operations in order to maintain competition between its competitors at the retail level. The consent agreement is a formal agreement registered with the Competition Tribunal that has the force of a court order and contains remedies that the Commissioner has deemed appropriate against the likely anti-competitive effects of the transaction.
As a result, the Commissioner has issued a no-action letter confirming that he will not contest the transaction at this time. On December 14, the Competition Bureau entered into a consent agreement with McKesson Corporation regarding the acquisition of Rexall Health from Katz Group. The agreement concludes the Executive Committee`s full review of the transaction, which was announced more than nine months ago, on March 2, 2016. OTTAWA, December 16, 2016 — On December 13, 2016, the Commissioner of Competition entered into an approval agreement with mcKesson Canada Corporation and Rexall Pharmacy Group Ltd. to address concerns related to McKesson Corporation`s (McKesson) proposed acquisition of the Katz Group`s healthcare operations, which include retail pharmacy chain Rexall and health claims decision-making company ClaimSecure. The agreement provides for McKesson to sell pharmacies in 26 markets and also requires McKesson to restrict the transfer of commercially sensitive information between its wholesale pharmaceutical company and retail company Rexall to ensure that competition for wholesale and retail pharmaceutical products and services is maintained in local markets across Canada. In December 2016, the Bureau determined that McKesson`s acquisition of Rexall would likely have resulted in a significant reduction or prevention of competition in the wholesale and retail markets for certain pharmaceutical products and services, including prescription and non-prescription drugs. The issue was resolved through an agreement with the office in which McKesson agreed to sell 27 Rexall retail pharmacies in 26 communities across Canada.
The Competition Bureau has entered into an agreement with pharmaceutical wholesaler McKesson Corporation to acquire pharmaceutical distributor Rexall Health. . In view of Rexall`s firewalls and divestitures in the retail sector, the Presidency is convinced that the proposed concentration is unlikely to result in a significant reduction or prevention of competition. Ownership of the 27 pharmacies will be transferred from McKesson to RXDM on an ongoing basis between mid-June and August 31, 2017. McKesson, based in San Francisco, is Canada`s largest pharmaceutical wholesaler. This combination of structural and behavioral remedies reflects the office`s approach to other recent retail transactions, including Loblaw/Shoppers and Parkland/Pioneer transactions. * McKesson doesn`t expect store closures following divestitures Last March, Calgary-based Katz Group announced it was selling its 470 Rexall retail pharmacies to McKesson, a company it has worked closely with for 20 years. Current policies limit each user to a total of no more than 10 requests per second, regardless of the number of computers used to send requests. To ensure that SEC.gov remains available to all users, we reserve the right to block IP addresses that make excessive requests. Upon closing of the transaction, McKesson, Canada`s largest pharmaceutical wholesaler, will acquire Rexall Health`s approximately 470 retail pharmacies. The Bureau noted that the acquisition was likely to result in a significant reduction or prevention of competition in the wholesale and retail trade of certain pharmaceutical products and services. Locations for sale are located in small communities in Ontario, Alberta, Saskatchewan, Colombia.C and the Northwest Territories.
In 2012, McKesson acquired Katz`s independent outlets and franchises — primarily IDA and Guardian — for about $920 million. For general questions, please contact: Competition Bureau Information Centre Telephone: 819-997-4282 Toll-free: 1-800-348-5358 TTY (Hearing Impaired): 1-866-694-8389 www.competitionbureau.gc.ca Inquiries/Complaints Stay logged in Note: We do not provide technical support for the development or debugging of scripted download processes. As part of its services to wholesale customers, many of whom are direct competitors of Rexall, McKesson receives commercially sensitive information. This includes detailed data on wholesale prices and quantities of pharmaceutical products purchased by customers, information on the timing of such purchases and deliveries, and information on upcoming customer promotions, including information about the specific products that will be advertised, the timing and duration of promotions, the expected retail prices of promotional items and the markets in which such promotions will take place. become.. .
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