Antitrust body OKs Gokongwei takeover of Cebu-based pharmacy
Gokongwei-led Robinsons Retail Holdings Inc. said the government antitrust body cleared the company’s 2020 takeover of Rose Pharmacy after a follow-up review was launched last year.
The supermarket and special retail store operator said in a stock exchange filing that the mergers and acquisitions office of the Philippine Competition Commission started another review of the acquisition on Nov. 7, 2022.
“After approximately 11 months of review, on 5 October 2023, the Commission en banc resolved to terminate the motu proprio review and take no further action on the completed acquisition, there being no sufficient basis to prohibit the same,” Robinsons Retail said.
“The Commission issued the formal certification to this effect on 6 November 2023,” it added.
Established in 1952, Cebu City-based Rose Pharmacy remains one of the country’s top drugstore chains with nearly 400 outlets located in the Visayas and Mindanao. It was fully acquired by Robinsons Retail’s South Star Drug Inc. on Oct. 30, 2020.
The PCC decided to reopen a review on the transaction to determine whether this would lead to a substantial weakening of competition especially in Luzon “where Rose Pharmacy has potentially exited.”
In its filing, Robinsons Retail said Rose Pharmacy was a strategic asset in its portfolio and was a “complementary network to South Star Drug’s strong presence in Luzon and Metro Manila.”
“The acquisition further allows [Robinsons Retail] to leverage its scale and synergies to drive wider product assortment, better customer service, and offer greater value to its customers across the Philippines,” it added.
The company also operates two other drugstore banners, Southstar Drug with 639 stores and The Generics Pharmacy with over 2,000 franchised stores.
Robinsons Retail earlier reported that net income from January to September this year dropped 41 percent to P2.58 billion. Net sales grew 8.7 percent to P138.2 billion.
It said the drop in net income was party due to changes to its banking investments. Robinsons Retail was a major shareholder of Robinsons Bank, which is being sold to BPI though a share swap deal.
