Norgesgruppen allowed to acquire Vitusapotek

The Norwegian Competition Authority has approved Norgesgruppen’s acquisition of Vitusapotek. 

Grocery and pharmacy are two important consumer markets in Norway. On October 15, the Norwegian Competition Authority (NCA) notified that the acquisition would require closer assessment. Since then, the NCA has collected and reviewed extensive documentation from the parties and other actors in the two markets. 

Norgesgruppen owns and co-owns a significant number of commercial properties that are, among other things, leased to pharmacies. Norgesgruppen also has a strong position as a tenant. Access to attractive premises is important in the pharmacy market. The NCA has therefore been concerned that, following the acquisition, Norgesgruppen could use its position within commercial real estate to deny other pharmacy businesses access to premises, in a way that would significantly restrict competition in the pharmacy market. 

Furthermore, there is a competitive overlap between over-the-counter medicines and retail goods sold in both pharmacies and grocery stores, and the NCA has also been concerned whether the acquisition could lead to higher prices for these products. 

Following thorough analyses and assessments, the NCA has concluded that the acquisition does not provide grounds for intervention. 

–  When Norway’s largest grocery chain wishes to buy the country’s second-largest pharmacy chain, it is obvious that the Norwegian Competition Authority must assess this thoroughly. We have concluded that the acquisition will not significantly impede effective competition. This means the acquisition can be carried out, says Beate Berrefjord, Director of the Department for Food, Trade and Health.