Medivet mergers risk undermining competition ‘in 34 local areas’, CMA warns

The acquisition of 12 previously independent businesses by a major veterinary company risks a substantial loss of competition in more than 30 parts of England and Northern Ireland, a regulator has warned.

The Competition and Markets Authority (CMA) has today (18 May) released the initial findings of its investigation into 17 separate deals completed by Medivet between September 2021 and September 2022.

The CMA reported no competition issues arising from three of the deals, while its inquiry into two others was halted last month when they were found not to meet statutory investigation requirements.

Competition

But it said there was a “realistic prospect of a substantial loss of competition in the supply of small animal services in 34 local areas of England and Northern Ireland from the other 12 transactions.

It also identified similar concerns on out-of-hours provision relating to two of the deals, covering a total of five local areas in England.

And the authority said it had preliminary concerns that the acquisitions “could lead to worse quality, a more limited range of services or higher prices for pet owners in affected areas”.

Businesses

The businesses affected by competition concerns following today’s ruling are:

• All Creatures Clinic
• The assets and business of the veterinary practice under the name Iffley Vets
• The Oxford Cat Clinic
• The Vet Station
• Barton Companion Animal Services
• I T Kalogera Holdings (including its subsidiary I T Kalogera)
• Fitzalan House Veterinary Practice
• Ferring Street Vets
• The Hackney Vet
• The assets and business of the veterinary practice under the name Caddy Veterinary Surgery/Practice
• E Street (trading as Elizabeth Street Veterinary Clinic)
• The assets and businesses of the veterinary practices under the name The Vet on Richmond Hill and The Vet in St Margaret’s

Affected geographical areas include parts of County Antrim, Greater London, Hertfordshire, Leicestershire, North Lincolnshire and West Sussex.

Submit proposals

The CMA has now given Medivet five working days, ending next Thursday 25 May, to submit proposals to address its concerns, under the provisions of the Enterprise Act 2002.

The authority will then have a further five working days, ending Friday 2 June, to consider whether any submissions it receives may be acceptable.

‘Considering options’

In a statement responding to the announcement, Medivet said: “We have now received the findings of the CMA’s initial investigation into 17 historic acquisitions, which concludes that 5 acquisitions can return to operating as part of the Medivet community and 12 acquisitions remain with potential competition concerns.

“We are delighted to welcome our colleagues, clients and patients from these 5 acquisitions back to our community, but incredibly disappointed with the CMA’s decision on the remaining acquisitions, which we strongly disagree with.

“We are now considering all of our options for these sites.”