Neuca has sought to acquire Intra, but Poland’s competition Authority cites limitation on competition in opposing the transaction.

In May, Poland’s Office of Competition and Consumer Protection (UOKiK) received an application seeking approval of Neuca’s takeover of Intra. Both companies are wholesalers of products to pharmacies and hospitals. The concentration would lead to the acquisition of a wholesaler in Warsaw. In July, UOKiK extended proceedings in the case to a second phase, because there was a justifiable likelihood that the concentration would limit competition. In analyzing the concentration, UOKiK conducted a market study which looked at the two companies’ competitors.

The materials gathered for the analysis showed that competition could be limited on a local market, which was determined to be within 110 kilometers of the wholesaler. It is on that market that the majority’s of the two companies’ and their competitors’ sales occur, and so it is there that Neuca and Intra compete with one another. The threat is primarily the result of Neuca’s strong market position, currently the most robust on the market. The acquisition would only strengthen it further, and cause it to significantly eclipse the 40 percent share antimonopoly law identifies as a dominant position.

UOKiK’s analysis also showed that the concentration would not lead to a restriction of competition on the wholesale market of medicines to hospitals, which is national in scope.

In cases where there is a reasonable likelihood of competition being substantially reduced as a result of a concentration, UOKiK presents the enterprises with it objections. They include a justification and do not prejudge the final outcome of proceedings.

Under the law, undertakings have 14 days to respond to the concern, but may request a two-week extension.

Additional information for the media

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