Robinsons Retail Holdings Inc. (RRHI) of the Gokongwei Group said Friday the government’s anti-trust body cleared its acquisition of 100-percent stake in Cebu-based Rose Pharmacy Inc.
RRHI said in a disclosure to the stock exchang the Mergers and Acquisitions Office of the Philippine Competition Commission completed the motu propio review on the company’s acquisition of Rose Pharmacy on Oct. 5.
“After approximately 11 months of review, on 5 October 2023, the commission en banc resolved to terminate the motu proprio review and take no further action on the completed acquisition, there being no sufficient basis to prohibit the same,” RRHI said.
RRHI’s subsidiary South Star Drug Inc. acquired 100 percent of Rose Pharmacy from Mulgrave Corporation B.V (MCBV), a wholly-owned subsidiary of Dairy Farm International Holdings, Ltd. in October 2020 for P4.5 billion.
Established in 1952, Rose Pharmacy is a family-run drugstore in Cebu City with the goal of providing quality and affordable medicines to communities.
It is one of the leading drugstore chains in the Philippines with close to P8 billion in net sales in the first nine months of 2023, up 15.1 percent year-on-year.
It has over 394 stores strategically located in the Visayas and Mindanao.
RRHI said Rose Pharmacy is a very strategic addition to its drugstore portfolio, with its highly-regarded brand in VisMin, and complementary network to South Star Drug’s strong presence in Luzon and Metro Manila.
The acquisition allows RRHI to leverage its scale and synergies to drive wider product assortment, better customer service and offer greater value to its customers across the Philippines.
RRHI operates two other drugstore brands, Southstar Drug with 639 stores and TGP with over 2,000 franchised stores.
Meanwhile, the board of RRHI also disclosed that it approved a P1-billion share buyback program to boost shareholder value.
RRHI bought back 108,018 million common shares worth P6 billion from Mar. 9, 2020 to Nov. 16, 2023.
