Bulgaria’s competition authority said on Friday that it has granted approval to Germany-headquartered STADA Arzneimittel to acquire the local operations of Czech Republic-based healthcare company Walmark.
The only segment on the Bulgarian market on which both companies operate simultaneously is over-the-counter drugs trade, but they only hold a combined stake of 0-5%, the Commission for Protection of Competition (CPC) said in its decision.
STADA’s Bulgarian unit – STADA Pharma Bulgaria, booked revenue of 5.2 million levs ($3 million/2.7 million euro) and a net profit of 232,000 levs in 2018, according to its most recent annual financial statement. According to Walmark Bulgaria’s latest publicly available financial statement, the company had revenue of 15.1 million levs and a net profit of 2.8 million levs in 2017.
Private equity investor Mid Europa Partners said in November 2019 that it has signed an agreement to sell Walmark’s business in Romania, Bulgaria and seven other EU countries to STADA. The transaction is subject to customary anti-trust clearance and is expected to close in the first quarter of 2020, CEE-focused Mid Europa said at the time.
Walmark is a supplier of dietary supplements present in nine EU countries: Romania, Bulgaria, the Czech Republic, Lithuania, Estonia, Latvia, Slovakia, Hungary and Poland.
Stada Arzneimittel is a pharmaceutical company based in Bad Vilbel, Germany which specializes in the production of generic and over-the-counter drugs. It sells its products in over 120 countries and employs 10,400 worldwide.