European Commission clears acquisition of subsidiaries of Sweden's Apoteket by Altor

The European Commission has granted clearance under the European Union Merger Regulation for the acquisition of sole control of Pharmacy Company Sweden 1 AB and Pharmacy Company Sweden 8 AB, subsidiaries of Swedish state-owned company Apoteket AB, by Altor Fund III of the Channel Islands.

Altor Fund III is a private equity investment fund. The Altor funds consist of three private equity funds (Altor 2003 Fund, Altor Fund II and Altor Fund III) and focus on investments in the mid-market segment of the Nordic region and are active in a variety of industries. Apoteket AB has had the exclusive right to sell pharmaceuticals on the Swedish market since the 1970s. The operation was examined under the simplified merger review procedure.

The Swedish government announced at the start of the year that intends to privatize Apoteket AB in a series of moves rather than in one fell swoop (The Pharma Letter February 9).

Under plans outlined by Health Minister Goran Hagglund, Apoteket will remain as a key actor on a competitive market, with the majority of the pharmacies it currently controls remaining under state ownership, while the other premises will be sold. The transfer to new owners will be undertaken so as to ensure that access to new medicinal products is at least as good as it is at present.

Subsequently, Sweden's parliament approved a plan to end the pharmacy monopoly and privatize the sector, with major changes to Apoteket AB. The group was told to give up two-thirds of its total of 946 pharmacy outlets (TPL May 6).