By Brazil Stock Guide – MercadoLibre Inc. (NASDAQ: MELI) has acquired Cuidamos Farma, a drugstore located in the Jabaquara district of São Paulo, from digital prescription startup Memed. The deal was carried out through Kangu, MercadoLibre’s logistics subsidiary, according to a report by Valor Econômico’s Pipeline.
Memed, controlled by the Genoma IV and VII funds of private equity firm DNA Capital, counts Pedro Bueno, a shareholder in Brazilian health group Dasa (BVMF: DASA3), as a partner. The transaction still requires approval from Brazil’s antitrust regulator Cade. It marks MercadoLibre’s formal entry into the pharmaceutical retail sector, initially focused on over-the-counter (OTC) products.
MercadoLibre confirmed the acquisition talks, saying it “will share more information at the appropriate time.” Memed stated the agreement was “a final stage of its strategic process, involving the possible sale of a physical retail point, without establishing any corporate or commercial relationship between the company and MercadoLibre.”
The move positions MercadoLibre against Brazil’s major pharmacy chains, expanding competition in a sector growing on the back of digitalization and consumer demand for convenience.
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