Advised on a spin-off deal

Our lawyers have advised one of the leading regional wholesale and retail pharmaceutical groups UAB Gintarinė vaistinė on a spin-off of pharmacies chain pursuant to a conditional merger clearance granted by the Lithuanian Competition Council. This was the first transaction of this kind under the Council’s conditions.

The transaction was a condition for the implementation of the Lithuanian market consolidation – the acquisition of the 100% stake in a holding company of one of the largest pharmacy chains in the region, UAB Litfarmos vaistinė, which comprises 64 pharmacies in 30 Lithuanian cities.

The spin-off was a proposal of our lawyers to the Competition Council, given the overall reluctance of the Council to grant merger clearance in Litfarma transaction because of the fear of increasing dominance of the acquirer as a result of the transaction between direct competitors.