Drogasil and Raia confirm merger and become the largest pharmacy chain.
The two companies, which grossed R$ 4,1 billion in 2010, will continue to operate under their own brands; their shares on the stock exchange are rising.
247_Under the name Raia Drogasil, the largest pharmacy chain in the country has just emerged, with a network of 700 stores in nine states. How this will affect the consumer, whether with drug prices going up or down, only time will tell. What we have at the moment is the official confirmation of the merger between the Drogasil and Droga Raia chains, a company that will have 50% of its capital on the BM&FBovespa stock exchange, and will have an 8,3% market share. The negotiation was unanimously approved by the boards of both companies. Together, they have a revenue of R$ 4,1 billion.
The brands of the two pharmacy chains will be maintained. Raia Drogasil will retain the holding company and merge the companies' shares on the stock exchange. Current Drogasil shareholders will own 57% of the new company. Droga Raia shareholders will hold the remaining 43%. In the executive structure, Claudio Roberto Ely, general director and investor relations officer of Drogasil, will be the CEO of Raia Drogasil, while Antônio Carlos Pipponzi, president of Droga Raia, will be the chairman of the board. On Wednesday, March 3rd, when the Ibovespa was struggling to avoid disaster, the shares of the two companies stood out: DROG3, from Drogasil, rose 2,1% in the mid-afternoon, and RAIA3, from Droga Raia, gained 2,3%.
In a conference call with analysts, the companies set a two-year deadline to realize all synergy gains from the merger. “We want to fully integrate our operations. At this moment, we will invest in organic growth before considering larger moves,” stated Antônio Carlos Pipponzi, chairman of the board of Raia Brasil. “We opted for a shared operation because these are two strong brands in the market that complement each other. The partnership didn't arise out of necessity, as these are networks that are self-sustaining. In addition to conventional synergies, such as gains in efficiency, competitiveness, and scale, the union will expand the joint scope of the brands,” said Eugenio de Zagottis, the company's investor relations director.