Lloyds Pharamcy, the US-owned network of retail pharmacies is in discussions to acquire Sam McCauley Chemists, one of Ireland’s largest independently-owned pharmacy groups, in a deal reported to be worth up to €50m.

McCauley's, which is headquartered in Wexford, operates close to 30 pharmacy shops principally south east of a line drawn from Dublin to Kerry.

Llloyds, which originated from the Unicare Group and was previously known as Doc Morris, is owned by the American drugs distribution group, McKesson, and operates about 100 chemist shops here.

It has grown aggressively in recent years both by opening new stores and by acquiring smaller pharmacy chains - The Sunday Times reports that McCauley's is its latest takeover target.

According to its most recently-filed accounts, McCauley's generated sales of €74m in the year to last September and operating profits of €3.8m. The group had bank debts of €13.5m

Any deal would certainly be subject to review of the Competition and Consumer Commission.