THE Fair Trading Commission (FTC) has stepped up its scrutiny of Acado’s proposed acquisition of Massy Distribution (Jamaica), amid concerns that the deal could reduce competition in Jamaica’s distribution and pharmaceutical sectors.

Acado, formerly known as Caribbean Distribution Partners, is jointly owned by Trinidad and Tobago’s Agostini and Barbados-based Goddard Enterprises. The company announced in February that it had agreed to buy Massy Distribution (Jamaica) from Massy Holdings and had requested the FTC’s approval to proceed.

But after conducting that review during the stipulated 30-day period, the FTC determined that there were competitive concerns related to the acquisition, though the link was indirect.

“While [Acado] does not presently operate in Jamaica, one of its parent companies, Agostini Ltd, owns Health Brands Ltd, a key player in the local distribution of pharmaceutical and personal care products. Health Brands was reported in 2023 as the leading distributor in Jamaica’s pharmaceutical and medical products market. The proposed acquisition has therefore raised competition concerns, particularly given the significant market overlap between Health Brands and Massy,” the FTC wrote.

As a result, the regulator has moved the transaction to a second-phase review, which is expected to be concluded by the end of June.

“The phase two review seeks to determine if the merger or acquisition is likely to lead to a substantial lessening of competition,” the FTC said. Both parties will be allowed to propose remedies to address any anti-competitive concerns.