FTC Competition Concerns Trigger Review of Massy Sale to Acado

In Trinidad and Tobago, Guardian media is reporting that Jamaica’s Fair Trading Commission, FTC, has found that the acquisition of Massy Distribution Jamaica by Acado Limited raises competition concerns, resulting in the transaction being advanced to a phase two review.

Acado announced in February that it was set to acquire Massy Distribution Jamaica from Massy Holdings. This deal was set to be consummated by the end of the third quarter ending June 30.

Acado is a 50-50 joint venture between Goddard Enterprises Limited and Agostini Limited, formerly Agostini. Both Agostini and Acado are chaired by Christian Mouttet.

As part of the process, Acado requested the Jamaican FTC’s non-objection to the acquisition of Massy Distribution Jamaica.

The commission concluded phase one of its review process during which it determined that there were competitive concerns related to the acquisition.

The phase one review was concluded within the stipulated 30-day time period.

Jamaica’s competition regulator found that while Acado does not operate in Jamaica, one of its parent companies, Agostini, owns Health Brands, which has been renamed Aventa Jamaica.

The FTC describes Aventa Jamaica as a key player in the local distribution of pharmaceutical and personal care products.

It says the proposed acquisition raises competition concerns, particularly given the significant market overlap between Health Brands and Massy Distribution Jamaica.