On August 23, 2007, the UK Office of Fair Trading (OFT) accepted undertakings from Admenta Holdings Limited (Admenta), the owner of Lloyds Pharmacy Limited (Lloyds), in lieu of referring Lloyds’ acquisition of Independent Pharmacy Care Centres plc to the UK Competition Commission, the UK’s equivalent of a Phase II merger review.

Admenta agreed to divest pharmacies in four local areas where the merger would have led to a reduction from three to two independent community pharmacies within a one mile radius. The OFT must approve the purchaser of the divested pharmacies. This case is another example of parties agreeing to remedies with regulators in Phase I of a merger review to avoid a lengthy, costly and uncertain in-depth merger investigation.