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Walgreens forms German pharmaceutical JV with McKesson

Walgreens Boots Alliance Inc. and McKesson Corp. agreed to form a joint venture combining their pharmaceutical wholesale businesses in Germany, according to a joint release Dec. 12.

Walgreens will own 70% of the joint venture and McKesson will hold the remaining 30% interest.

The business will combine the operations of Walgreens' Alliance Healthcare Deutschland AG and McKesson's GEHE Pharma Handel in Germany.

The companies said they expect the new venture to drive greater economies of scale for both parties and boost the competitiveness of the German pharmaceutical wholesale market.

Financial terms of the transaction were not disclosed.

Walgreens and McKesson will have proportional representation on the joint venture's supervisory board. The deal is expected to be completed in at least six months, subject to merger clearance and approval by customary authorities.