Robinsons Retail Holdings Inc. (RRHI), a member of the Gokongwei Group, reported that its acquisition of Rose Pharmacy Inc. has been cleared by the Philippine Competition Commission (PCC).
Under a share purchase agreement dated Sept. 25, 2020, RRHI, through its 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.
Completion of the acquisition occurred on Oct. 30, 2020 but, on Nov. 7, 2022, the Mergers and Acquisitions Office of the PCC commenced a motu proprio review of the completed acquisition.
“After approximately 11 months of review, on Oct. 5, 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.
It added that, “the Commission issued the formal certification to this effect on Nov. 6 2023, which was received by RRHI on the same day."
Rose Pharmacy was established in 1952 as a family-run drugstore in Cebu City with the goal of providing quality and affordable medicines to communities.
At present, it is one of the leading drugstore chains in the Philippines with close to P8 billion in net sales for the first nine months of 2023, up 15.1 percent year-on-year, and over 394 stores strategically located in Visayas and Mindanao.
“Rose Pharmacy is a very strategic addition to RRHI’s drugstore portfolio, with its highly-regarded brand in VisMin, and complementary network to South Star Drug’s strong presence in Luzon and Metro Manila,” RRHI said.
It noted that, “the acquisition further 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 banners, Southstar Drug with 639 stores and TGP with over 2,000 franchised stores.
Meanwhile, RRHI said its Board of Directors has approved extension of the firm’s share buyback program and the allotment of an additional P1 billion to support it.
In March 9, 2020, RRHI started a share buyback program involving up to P2 billion worth of the company’s common shares. On Feb. 26, 2021, this was extended for the additional amount of P2 billion.
On Feb. 11, 2022, the program was again extended for an additional P1 billion and by another P1 billion on April 27, 2022. The latest extension brings the amount allotted for the share buyback program to a total of P7 billion.
From March 9, 2020 up to Nov. 16, 2023, the company has bought back 108.02 million of its common shares costing P6 billion.
RRHI said the objectives of the share buyback program are to enhance shareholder value and to manifest confidence in the company’s value and prospects through the repurchase of the common shares of the company and through the return of a portion of the Company’s capital to its shareholders.