Boots, the British health retail giant, has bought Hayes Conyngham & Robinson, making it the largest chemist chain in Ireland. The deal, worth around £13 million, is part of a planned expansion in the Republic, where Boots plans to operate at least 30 stores by 1999.

Announcing the acquisition, the British company stressed the "common heritage" of the two companies and guaranteed the jobs of HCR's 300 staff. Boots also promised "a constructive relationship" with Irish suppliers.

"We share the same core values of providing excellent customer service - caring for our customers and caring for our employees," said Mr Ivor Morton, Boots' head of stores. "We're going to enjoy working the next century together."

The company would retain all existing staff, he added, and maintain their current pay and conditions; workers who find that Boots' own remuneration package would work out better would be allowed to switch over.

Mr Morton said he expected some of HCR's managers, with their knowledge of the Irish market, to participate in the company's expansion. This would entail hiring more employees.

The move worried Irish pharmaceutical suppliers, who fear that Boots will use its own network to ship products directly to the stores. The Small Firms' Association warned last night that the take-over could threaten "up to 1,000 jobs".

The SFA's director, Mr Brendan Butler, said he and the Cosmetics Association were seeking an urgent meeting with Boots management. He pointed out that in Britain, Boots has over 1,300 stores - more than the entire number of pharmacies in the Republic - giving it enormous purchasing power.

"The SFA and the Cosmetics Association are seeking assurances from Boots that full consultation will take place with existing distributors regarding how the new Boots shops will be stocked, and that Irish suppliers and distributors will be offered increased opportunities to compete to supply Boots outlets not only in Ireland but also in Britain," Mr Butler said.

The Irish Pharmaceutical Union said it was concerned that Boots would source most of its "own-brand" products outside Ireland.

Mr Morton sought to allay such fears, promising to respect product lines popular with HCR's customers.

"We intend to pursue a constructive relationship with HCR's suppliers, and we recognise that the Irish pharmacy market is particularly distinctive," he added.

At present, Boots' operations in the Republic use local suppliers as well as its own distribution network, based in Santry, Dublin. Mr Morton said he expected to expand the distribution operation as the company grew.

Boots, based in Nottingham and trading since 1877, had a turnover last year of £4.6 billion sterling and an operating profit of £492 million sterling.