Celesio fears intense competition on German pharmacy market |
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Wed, 18 Apr 2007 10:49
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FRANKFURT (Thomson Financial) - Celesio AG CEO Fritz Oesterle fears that deregulation in the German pharmacy market could lead to intense competition, Handelsblatt newspaper reported citing an interview with Oesterle.Current German law allows pharmacists to operate a maximum of four outlets, all of which must be in close proximity, and which must be owned by individual pharmacists.Oesterle pointed out that in Britain - where pharmacy chains are permitted, and where Celesio operates the Lloyds pharmacy chain - the issue of 'unregulated liberalisation' does not exist.'The thought of stores like Media Markt and Saturn (electronics chain stores in Germany) cropping up in the pharmacy market is already worrying me,' Oesterle told the newspaper.A market potentially dominated by drugstores would lead to lower profit margins, he added.'If such a scenario arose, I am not sure if Germany would be still attractive for us,' said Oesterle.However, he dismissed the suggestion that Celesio is losing interest in Germany, stressing: 'Germany remains an important market for us.'Regarding media reports that Celesio could be preparing to bid for UK rival Alliance Boots, Oesterle said: 'We would rather not comment on this market speculation.'krysia.diver@thomson.comkd/jlwCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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RPT Celesio seeking backing for Alliance Boots approach - reports 