Transaction firm facing monopoly challenges

Durrant Pate/ Contributor

The planned sale of 100 per cent of Massy Distribution (Jamaica) to Caribbean Distribution Partners (CDP), a subsidiary of Trinidad  & Tobago’s manufacturing and distribution conglomerate, Agostini Group, has been red-flagged by the Jamaican Fair Trading Commission (FTC), which says the transaction will create a monopoly in the sale of insulin in Jamaica.

The competition regulatory agency says its “review of the transaction identified significant competition concerns in the distribution of insulin products in Jamaica. Currently, three brands are available in Jamaica, and all are distributed by either Massy or Aventa.  The proposed transaction would create a monopoly distributor for these brands.”  Aventa Jamaica Limited operates under Agostini’s pharmaceutical umbrella, while Massy Distribution (Jamaica) is a leading distributor of pharmaceuticals and consumer products in the island.

CDP, which is a 50/50 joint venture between Massy and Goddard of Barbados, is now operating under the name Acado Limited, which is the parent company of seven distribution companies across the Caribbean, with only one currently selling to Jamaica. CDP has described the acquisition as “strategic to the regional expansion of our group’s consumer products and pharmaceutical businesses.”

Safeguarding competition in the insulin market

Based on the transaction details, Massy’s consumer products division will be managed directly by Acado, while its pharmaceutical operations will be integrated with Health Brands Jamaica Limited, which has since been rebranded as Aventa Jamaica Limited under Agostini’s pharmaceutical umbrella. On May 27, 2025, the FTC formally notified the parties and began negotiations to ensure the acquisition does not compromise the accessibility or affordability of insulin, given its critical importance to individuals living with diabetes. 

To grant its non-objection, the FTC requires that competition be preserved in the insulin market. This entails the appointment of an independent distributor for the brand(s) currently distributed by either of the parties to the transaction. In addition, the FTC advised the parties that “once a distributor is identified and a formal agreement or commitment is submitted, the FTC will conduct due diligence to confirm that the new arrangement addresses its competition concerns. 

For example, the new distributor must not be affiliated with any company involved in the acquisition. Upon verifying that the revised distribution structure safeguards competition, the FTC will issue a letter of non-objection, subject to additional conditions designed to preserve competition in the market. The FTC reaffirms its commitment to preserving competition in Jamaica under the Fair Competition Act and “continues to actively engage with Acado, Massy, and Aventa, providing guidance on requirements, timelines, and expectations throughout the review process.  

Additionally, the FTC will implement a monitoring mechanism to ensure compliance with all conditions and commitments.