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Johannesburg – The Competition Commission has approved the merger of the Alpha Pharm group of regional pharmaceutical distributors into a single national company, Alpha Pharm.
This decision follows a near unanimous vote by shareholders of APKZN, Apec and Kemco to merge their companies and accept an offer from a Swiss investment company, Shogun Holdings und Finanz, for 51% of the issued shares in the new company.
"The formation of the national company is a major boost for the 900 independent community pharmacies that own 49% of the new shares and for the community pharmacy sector as a whole," Alpha Pharm said in a statement.
"The new Alpha Pharm will put all its energies into ensuring that its pharmacies compete in a market increasingly dominated by major retail chains."
As well as a large presence in the retail market the company also produces a range of products exclusive to Alpha Pharm pharmacies.
Lynton Lomas, Shogun SA partner, believes community pharmacists make a critical contribution to South Africans who cannot access a large pharmacy in a big city.
"The investment of R350m by Shogun will provide additional working capital to ensure that the essential services provided by our pharmacies are enhanced to the benefit of South Africans, particularly those who are disadvantaged when it comes to healthcare," he said.
"The company will ensure continuity of services to consumers of the high standard previously delivered by the individual companies that make up Alpha Pharm."
