Competition Commission and Competition Tribunal give green light to Netcare outsourcing agreement with Clicks
Friday, 11 November 2016, Healthcare group Netcare and pharmacy retail group Clicks today announced that the Competition Commission and Competition Tribunal have approved the long-term agreement which they entered into on 8 June 2016, whereby Netcare will outsource its 37 retail pharmacies in Medicross medical and dental centres and 45 Netcare hospital retail front shop operations to Clicks.
Richard Friedland, chief executive officer of Netcare, said: “Netcare is continuously exploring ways to improve our service delivery. Affiliating the pharmacy and front shops to an experienced retail provider of Clicks’ stature will enable us to provide an enhanced retail offering to patients, consumers and other stakeholders.”
Clicks will assume control of all Medicross pharmacies on 1 December 2016 and the 45 retail front shops of the Netcare hospital division on 1 February 2017. The agreement excludes the dispensing of prescriptions in the Netcare hospital pharmacies, which remain within Netcare’s hospital operations.
David Kneale, chief executive officer of Clicks Group, said: “Our outsourcing agreement with Netcare will enable Clicks to expand its presence and make our pharmacy chain even more accessible and convenient to our customers. As part of the implementation process the Medicross pharmacies and Netcare front shops will be rebranded to Clicks. This is a strategically important agreement for Clicks and we look forward to a long-term mutually beneficial partnership with Netcare.”
Friedland and Kneale confirmed that specific staff members involved in Medicross and the retail front shops in the hospitals will be transferred to Clicks on terms similar to their current conditions of employment. Netcare and Medicross staff members indirectly affected will remain in the business on their current conditions of employment, thus confirming that there would be no loss of jobs as a result of the transaction.
The outsourcing agreement will have no material impact on the earnings and financial positions of either company.