16 December 2019 - Deborah Wilkes
Walgreens Boots Alliance (WBA) and McKesson have agreed to combine their pharmaceutical wholesale businesses in Germany.
WBA will have a controlling 70% stake in the joint venture, with McKesson owning the remaining 30%.
The transaction will combine WBA’s Alliance Healthcare Deutschland business with McKesson’s GEHE Pharma Handel. It will not affect any other WBA or McKesson businesses outside of the German wholesale activities.
Securing long-term success
Ornella Barra, WBA’s co-chief operating officer, commented that combining the wholesale operations was the “right decision to secure the long-term success of both businesses”.
“We are creating a sustainable company to drive success for our customers and the German healthcare system,” added Barra.
The two companies said the joint venture would “drive greater economies of scale” and “stimulate the competitiveness of the German pharmaceutical market”.
The transaction is subject to merger clearance and approval by the customary authorities. The process is expected to take at least six months.
WBA and McKesson will have a proportional representation on the joint venture’s supervisory board.
Financial details of the transaction were not disclosed.