McKesson and Celesio pass key milestone in merger process

McKesson and Celesio have passed a new regulatory milestone in their planned merger process, bringing them one step closer to becoming an integrated company.

The Stuttgart Higher Regional Court approved the registration of the domination and profit and loss transfer agreement between Celesio and McKesson, paving the way for them to become a combined group with annual revenues in excess of $170 billion (101.87 billion pounds).

Employing approximately 85,000 employees worldwide across operations in more than 20 countries, the new-look company will serve approximately 120,000 pharmacy and hospital locations on a daily basis in the US, Canada, Europe and Brazil.

Celesio will become part of McKesson's distribution solutions division, led by Paul Julian, executive-vice president and group president of McKesson.

John Hammergren, chairman and chief executive officer of McKesson, said: "Today's announcement is an important milestone and clears the path for our companies to operate in an integrated way, creating a global leader in pharmaceutical purchasing and distribution."

Celesio is responsible for operating the Lloydspharmacy, AAH Pharmaceuticals and Evolution Homecare Services brands in the UK.