OFT: Boot and Alliance will not go before the Competition Commission

l The boards of UK pharmacy and general retailer The Boots Group and Alliance Unichem, a UK-headquartered European drug distributor, say that the UK Office of Fair Trading has decided not to refer their merger, which was proposed last year (Marketletter October 10, 2005), for review by the Competition Commission under the provisions of the Enterprise Act 2002. The two companies say they will work together to address the OFT's concerns relating to the prospect of a substantial lessening of competition in around 100 local areas identified by the OFT. The combination of the two companies would create Europe's leading retail pharmacy business comprising just under 3,000 retail outlets and a combined turnover of $23.11 billion, with a wholesaler and distribution network serving over 88,000 outlets.