Mexico: Setback for COFECE in drug company merger case

Mexico’s Federal Economic Competition Commission (COFECE) has suffered a setback in the courts, with a decision that complicates the agency’s investigation over possible excessive concentration in the medicine distribution sector.

The country’s Supreme Court of Justice protected Marina Matarazzo, wife of the owner of drug distributor Nadro, against an order that would force her to reveal information that may determine whether the company was behind the improper acquisition of a competitor, Marzam Commercial and Industrial Group.

The purchase of Marzam from previous owner Genomma Labs was carried out by the Moench Coöperatief investment fund, with the endorsement of COFECE, almost three years ago. However, the operation has been reviewed by the agency after revelations suggested a possible link between the Dutch fund and members of the family that controls Nadro.

If the accusations are confirmed, Marzam could turn out to be in the hands of owners of one of its main competitors, which could be considered an unlawful concentration that threatens to reduce the levels of competition in the drug distribution sector.

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