Celesio about to acquire Panpharma takeover-source

FRANKFURT, June 28 (Reuters) - Europe's biggest drugs distributor Celesio (CLSGn.DE) is close to clinching a deal to take over Brazil's largest drugs distributor Panpharma, a person familiar with the project told Reuters on Sunday.

Germany's Celesio, which also operates pharmacies across Europe, is close to signing an agreement to buy the privately held company within the next few days, the financial-markets source said.

A spokesman for Celesio, which is controlled by German family holding Franz Haniel, said the company would not comment on "speculation and market rumours."

The acquisition of Panpharma, which generated sales of 3 billion Brazilian real ($1.55 billion) last year, would mark Celesio's first major expansion step outside Europe.

Brazil is seen as a key growth market for the global healthcare industry. Market researcher IMS Health expects the Brazilian pharmaceuticals market to grow 13 to 16 percent per year through 2013.

The move would be in keeping with Celesio's strategy to reduce dependency on the British Market, where it makes almost half of its operating earnings, and to expand in emerging markets.

Celesio, owner of the Lloydspharmacy chain, is being affected by lower payments for generic drugs introduced by Britain's National Health Service and a weak pound against the euro.

Options to expand in its German home market also remain limited. In May, the Europe's highest court upheld German legislation preventing non-pharmacists from setting up shop there, shooting down Celesio's growth plans. ($1=1.933 Brazilian reais) (Reporting by Frank Siebelt, writing by Ludwig Burger)