The Namibian Competition Commission (NaCC) has approved CFAO Healthcare Société Anonyme’s proposed acquisition of Nampharm (Pty) Ltd, subject to conditions aimed at preventing anti-competitive practices in Namibia’s pharmaceutical wholesale market.
NaCC Corporate Communications Practitioner Dina //Gowases said the transaction was granted conditional approval after the Commission identified potential risks of input foreclosure in the pharmaceutical wholesale market.
Under the conditions, Nampharm must continue supplying scheduled medicines to all customers on fair, reasonable and non-discriminatory terms.
The pharmaceutical wholesaler will not be allowed to favour certain customers and must maintain equivalent pricing and service levels. It will also be required to use objective and transparent procedures when allocating medicine stocks.
Nampharm must further safeguard commercially sensitive and confidential business information and establish a complaints-resolution mechanism for customers.
“The first merger concerned CFAO Healthcare Société Anonyme and Nampharm (Pty) Limited. The first condition states that Nampharm must continue supplying scheduled medicines fairly to all customers,” //Gowases said.
“It may not favour some customers over others, must maintain fair prices and service levels, allocate stock using clear and objective rules, protect confidential business information, and have a process in place for handling complaints.”
The proposed transaction will give France-based CFAO Healthcare control of Nampharm, a major Namibian pharmaceutical wholesaler and distributor supplying medicines, consumer healthcare products, surgical equipment, dental products and clinical supplies to private and public healthcare facilities.
CFAO Healthcare operates in more than 24 countries in sub-Saharan Africa and six French overseas territories, with operations spanning pharmaceutical distribution, logistics and cold-chain systems.
The group is also involved in pharmaceutical manufacturing and healthcare innovation and holds manufacturing licences in several African markets.
CFAO Healthcare does not currently control a pharmaceutical company incorporated in Namibia, although the wider CFAO Group already operates in the country through other business divisions.
These include vehicle rental operations through CFAO Motors Rental Namibia and CFAO Motors Shuttle Service Namibia, trading as Hertz Namibia, as well as CFAO Equipment, which supplies material-handling and warehousing equipment.
The conditions imposed by the NaCC are intended to prevent the acquisition from restricting rival businesses’ access to pharmaceutical products or allowing discriminatory treatment of Nampharm customers following the change in control.
