18 Feb 2022
The CVS Group’s completed purchase of The Vet could now be referred for an in-depth investigation after regulator found that the deal raised competition concerns.
James Westgate
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Original image © alesmunt / Adobe Stock
The CVS group’s merger with The Vet remains on hold after an investigation by the Competition and Markets Authority (CMA) found that the deal raises competition concerns.
Following an initial investigation, the CMA found that the deal raises serious competition concerns in Bristol, Nottingham, Portsmouth, Southampton and Warrington.
Information available to the CMA indicated that the combined businesses of CVS and The Vet would provide more than 30% of all veterinary services in each of these five local areas.
The CMA is concerned that the combined businesses would not face sufficient competition after the merger.
The CMA opened its investigation into CVS Group’s purchase of Quality Pet Care, which trades as The Vet, in September last year. The CVS Group owns 467 practices in the UK, while The Vet operates eight practices across England.
In its report, the CMA highlighted that in 2013 roughly 89% of UK veterinary practices were independently owned, a figure that had fallen to 45% by 2021.
The CMA served an initial enforcement order in September 2021, requiring the companies to operate independently, as they did before the purchase – this order remains in force.
Colin Raftery, CMA’s senior director of mergers, said: “The CMA has received a number of complaints in recent years about higher prices or lower quality services as a result of too many vets’ practices in the same area being under the control of a single company.
“This deal could lead to customers facing more limited treatment choices for their pets or paying over the odds for services in these areas. Should CVS fail to address our concerns, we will refer the deal for an in-depth investigation.”
CVS has five working days to offer legally binding proposals to the CMA to address the competition concerns identified.
The CMA would then have a further five working days to consider whether to accept these rather than referring the case to a Phase Two investigation.
For more information, visit the CMA’s CVS/Quality Pet Care merger inquiry page.
