McKesson Corp and Cardinal Health Inc, two US drugs distribution groups, were both negotiating with Celesio. Celesio is a German drugs company. According to two industry informants familiar with the matter, Celesio was in talks about selling its stakes.
Citigroup was hired by Celesio to give it advice about the ongoing agreement. Possible business collaboration with one of the bidders was also part of the talks.
Celesio, owner of the Lloyds Pharmacy chain in Britain, would make the merger due to cutbacks on health expenditures. Nation's proposed belt-tightening led to drug industry's alliances as a response to price pressures.
"After the latest transatlantic alliance signed by its competitors, CVS, McKesson and Cardinal Health are likely to be under pressure to establish a global position as well and bundle its purchasing," said Thomas Maus, DZ Bank analyst.
"Celesio is among the top players in the European and Brazilian pharmaceutical trading sector and is an obvious takeover target."
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