McKesson to sell 28 stores to win Competition Bureau approval for Rexall deal

U.S. health-care company McKesson has agreed to sell 28 drugstores

OTTAWA — U.S. health-care company McKesson has agreed to sell 28 drugstores to win approval from the Competition Bureau for its deal to buy the Rexall Health pharmacy chain.

The Canadian regulator says the proposed $3-billion acquisition of Rexall would “likely result in a substantial lessening or prevention of competition” if it was allowed to go ahead as originally planned.

Under a consent agreement with the Competition Bureau, McKesson will also restrict the exchange of “commercially sensitive information” between its wholesale and Rexall retail business in order to preserve competition at the retail level.

The locations pegged for sale are located in small communities in Ontario, Alberta, Saskatchewan, B.C. and the Northwest Territories.

Last March, Calgary-based Katz Group announced that it was selling its 470 Rexall retail pharmacies to McKesson, a company it has worked closely with for 20 years.

In 2012, McKesson acquired Katz’s independent outlets and franchise businesses — primarily operating as I.D.A. and Guardian — for about $920 million. The San Francisco-based McKesson is the largest wholesaler of pharmaceutical products in Canada.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Celebrating an online Easter in Red Deer

Look who is hopping around the city

Kenney discusses COVID-19 affects on agriculture, infrastructure over teleconference

Alberta government announced additional infrastructure funding to spur job growth

Alberta Premier expects oil and gas employment numbers to become ‘much, much worse’

Alberta Premier Jason Kenney says he expects employment numbers in the oil… Continue reading

Red Deer Region’s unemployment hits 10.2%

Alberta lost 117,100 jobs in March

UPDATE: Canadians awake to extra COVID-19 emergency benefit money, feds clarify changes

The CRA and federal officials are working to clarify the confusion around payments

Alberta Health Services provides COVID-19 prevention tips

Alberta Health Services has a number of recommendations for people amid the… Continue reading

Alberta government website has latest COVID-19 statistics

Red Deer Advocate readers can stay up to date on the COVID-19… Continue reading

Message from RE/MAX Commercial: What to do when ‘sorry we’re temporarily closed’ is part of your business as landlord or tenant

Do you have questions about rent reductions or deferral of lease payments? Experts can help

US women’s gender discrimination case delayed

The trial date for a gender discrimination case filed by members of… Continue reading

LeBron: Closure not likely unless Lakers can finish season

LOS ANGELES — Instead of preparing for a playoff run, LeBron James… Continue reading

7 Essential tracks from John Prine, folk music’s Mark Twain

NEW YORK — Some people, the songs just come out of them.… Continue reading

Jim Nantz adjusting to not calling Final Four, Masters

Jim Nantz couldn’t figure out why he was getting text messages from… Continue reading

Most Read