Fri, 18 Feb 2022 | MERGER
An investigation has been opened into the recent purchase of Quality Pet Care which trades as The Vet.
The company was bought by integrated veterinary services provider, CVS Group in December last year, however the Competition and Markets Authority (CMA) are investigating competition concerns over the merger.
Colin Raftery, Senior Director of Mergers, at the CMA, said: “Pets are much-loved members of millions of households across the UK and, when veterinary care is needed, it’s important that pet owners have access to a good service at the right price. 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.”
The acquisition by the CVS group, which has 467 veterinary practices across the UK of The Vet, which owns eight practices in England, has meant that the two businesses would account for a significant proportion of veterinary services in Bristol, Nottingham, Portsmouth, Southampton and Warrington. According to phase one of the CMA’s investigation, the merger could of the two businesses could result in worse quality of service for patients as there could be limited treatment options and higher prices as the combined businesses would not face sufficient competition.
In a statement, CVS said: "We are naturally disappointed with this decision, and have good grounds for believing that it would ultimately be overturned should we commit to a phase two investigation. We are reviewing the decision in detail before deciding on the most appropriate course of action. We will provide a further update to the market in due course.
"The board believes that this is the first case in which the CMA has assessed local competition in the veterinary sector.
"While we recognise that the CMA will assess each case on its merits, we nonetheless believe that the understanding gained as to the basis of assessment used by the CMA in this particular case will be helpful in the Group's own appraisal of a number of future acquisition opportunities in the UK."
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