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Green light to Pharmanova's expansion

The Hungarian Competition Authority (Gazdasági Versenyhivatal - GVH) authorised the acquisition of control by Pharmanova Vagyonkezelő Zrt. over four undertakings operating phramacies.

Pharmanova bought, in January of 2008, from AW Holding Kft its special member shares in Veszter Bt (Budapest), Aesculap 64 Bt (Szekszárd), Rézkígyó Bt (Dunakeszi), and Királyfi és Társa Bt (Tiszafüred). The buyer is a significant market player in the retail market of pharmaceuticals. Currently, it operates 115 pharmacies, 35 of which are located in Budapest. (Of the total of 2187 pharmacies in Hungary, 398 are in Budapest.)

In accordance with the Competition Act, the GVH may not refuse to grant authorisation for a concentration that does not create or strengthen a dominant position, which would impede the formation, development or continuation of effective competition on the relevant market or on a substantial part of it. As a result of the transaction, the market share of Pharmanova increased from 5,26% to 5.44%, which did not give rise to competition concerns. The undertaking concerned holds almost 10% of the pharmacies in Budapest, and the market share of the acquired four undertakings do not reach 1% of the relevant market. Thus, the concentration does not create a dominant position on the narrower relevant market either.

Case number: Vj-28/2008.

Budapest, 21 May 2008

Hungarian Competition Authority
Communication Group

Further information:
András Mihálovits
Hungarian Competition Authority
Address: 1054 Budapest, V., Alkotmány u. 5
Postal address: 1245 Budapest 5, POB 1036
Tel: +36-30 618-6618