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The completion of the purchase of Quality Pet Care, traded as The Vet by CVS Group, allows the Competitive Markets Authority (CMA) to conduct a detailed investigation after the transaction reveals competitive concerns. CMA began investigating transactions last December.

Both companies provide veterinary services, CVS Group owns 467 clinics in the UK, and The Vet operates eight clinics throughout the UK.

In a press release, CMA said: 2021. In recent years, ownership of veterinary practices throughout the UK has changed and many practices have been acquired by a small group of companies such as CVS. Independent veterinary practice accounted for 89% of the UK industry in 2013, but this share has fallen to less than half (45%) by 2021, primarily as a result of corporate groups purchasing independent practice. did.

“After a Phase 1 investigation into CVS’s acquisition of The Vet, CMA discovered that the merger would raise competitive concerns in five regions: Bristol, Nottingham, Portsmouth, Southampton and Warrington.

“A CMA study found that integrated businesses account for a significant proportion of veterinary services in each of these areas. Currently, CVS and The Vet-owned veterinary clinics have customers in each of these areas. Despite competing for, CMA is concerned that the integrated business will not face sufficient competition after the merger, which will limit pet owners with limited treatment options and higher prices. The quality of service may be reduced, such as having to pay. “

Colin Raftery, Senior Director of Mergers at CMA, said: price.

“The CMA has received many complaints in recent years about rising prices and poor quality of service as a result of too many veterans’ practices in the same area under the control of a single company.

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“This transaction may limit our pet treatment options and pay odds for services in these areas. If CVS cannot address our concerns, we will investigate further. Browse transactions for.

CVS has 5 business days to provide CMA with legally binding proposals to address identified competitive concerns. The CMA will then take another 5 business days to consider whether to accept these instead of referencing the cases to a Phase 2 investigation.

Published: February 18, 2022

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CMA has expressed competitive concerns regarding the acquisition of The Vet by CVS Group

Source link CMA has expressed competitive concerns regarding the acquisition of The Vet by CVS Group