Pharmacare Ltd ta Aspen Pharmacare v Eli Lilly SA (Pty) Ltd (LM086Sep23) [2023] ZACT 71 (14 November 2023)

Pharmacare Ltd ta Aspen Pharmacare v Eli Lilly SA (Pty) Ltd (LM086Sep23) [2023] ZACT 71 (14 November 2023)

The Tribunal found that the proposed merger, involving the acquisition by Aspen Pharmacare of the promotion, sales and distribution rights for various pharmaceutical products supplied by Eli Lilly SA, does not raise competition concerns in any relevant market. The transaction does not result in a substantial prevention or lessening of competition, nor does it raise any public interest concerns. The Tribunal therefore approved the merger unconditionally.

Citation
[2023] ZACT 71
Parties
Applicant: Pharmacare Ltd t/a Aspen Pharmacare; Respondent: Eli Lilly SA (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
14 November 2023
Case Number
LM086Sep23
Procedural Posture
Large Merger / Decision
Outcome
Merger approved unconditionally.
Legal Topics
Merger Control, Pharmaceutical Distribution Rights
Competition Law Commercial and Corporate Merger Control Pharmaceutical Distribution Rights

Case Brief

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Parties

Pharmacare Ltd t/a Aspen Pharmacare

Applicant

Eli Lilly SA (Pty) Ltd

Respondent

Procedural Posture

Large Merger / Decision

Legal Issues

  1. 1 Whether the proposed acquisition of promotion, sales and distribution rights of pharmaceutical products by Aspen Pharmacare from Eli Lilly SA raises competition concerns in the South African market.
  2. 2 Whether the merger should be approved unconditionally.

Ratio Decidendi

The Tribunal found that the proposed merger, involving the acquisition by Aspen Pharmacare of the promotion, sales and distribution rights for various pharmaceutical products supplied by Eli Lilly SA, does not raise competition concerns in any relevant market. The transaction does not result in a substantial prevention or lessening of competition, nor does it raise any public interest concerns. The Tribunal therefore approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed merger between Pharmacare Ltd t/a Aspen Pharmacare and the promotion, sales and distribution rights of certain pharmaceutical products sold in South Africa by Eli Lilly SA (Pty) Ltd is approved without conditions.