Sale of Massy Jamaica Faces Monopoly Challenges

• Jamaica’s Fair-Trading Commission (FTC) has noted that the sale of 100% of Massy Distribution (Jamaica) to Caribbean Distribution Partners (CPD), a subsidiary of Trinidad and Tobago’s (T&T’s) Agostini Group, will create a monopoly in the sale of insulin in Jamaica.
• In a notice released on November 20, the FTC indicated that its review of the proposed sale of Massy to CDP “identified significant competition concerns in the distribution of insulin products in Jamaica. Currently, three brands are available in Jamaica, and all are distributed by either Massy or Aventa, the rebranded name of Agostini’s pharmaceutical concerns.
• The transaction involves CDP, a subsidiary of Agostini Ltd., acquiring 100% of Massy Jamaica, a leading distributor of pharmaceuticals and consumer products in Jamaica. CDP described the acquisition as “strategic to the regional expansion of our group’s consumer products and pharmaceutical businesses.”
• However, the proposed transaction would create a monopoly distributor for these brands, according to the Commission. As such, to grant its non-objection, the FTC requires that competition be preserved in the insulin market. This entails the appointment of an independent distributor for the brand(s) currently distributed by either of the parties to the transaction.
• “Once a distributor is identified, and a formal agreement or commitment is submitted, the FTC will conduct due diligence to confirm that the new arrangement addresses its competition concerns. For example, the new distributor must not be affiliated with any company involved in the acquisition.”
• According to the parties, Massy’s consumer products division will be managed directly by Acado, while its pharmaceutical operations will be integrated with Health Brands Jamaica, which has since been rebranded as Aventa Jamaica under Agostini’s pharmaceutical umbrella. CDP is a 50/50 joint venture between Massy and Goddard of Barbados.

(Source: Trinidad and Tobago Guardian)