Celesio buys majority stake in Brazil's Panpharma

* Celesio acquires 54 pct stake via capital hike

* Celesio has right to buy more shares at later date

* Companies agreed not to disclose financial terms

* Celesio shares up 1.4 percent

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FRANKFURT, June 29 (Reuters) - Celesio (CLSGn.DE) has acquired a majority stake in Brazil's largest drugs distributor Panpharma, Europe's biggest drugs distributor said on Monday.

Germany's Celesio, which also operates pharmacies across Europe, said it bought the 54 percent stake through a capital increase and that it has the option to buy additional shares in Panpharma at a later date.

The companies agreed not to disclose financial terms.

Reuters reported on Sunday that the deal was imminent. [ID:nLS489678]

The acquisition of Panpharma, which generated sales of 3 billion Brazilian real ($1.55 billion) last year, marks 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 acquisition, which still must be approved by Celesio's supervisory board, 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 to emerging markets.

Celesio, owner of the Lloyds Pharmacy 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, Europe's highest court upheld German legislation preventing non-pharmacists from setting up shop there, shooting down Celesio's growth plans.

Celesio shares were up 1.4 per cent at 15.65 euros at 0736 GMT. ($1=1.933 Brazilian Real) (Reporting by Jonathan Gould; Editing by Mike Nesbit)