CVS takeover of The Vet raises competition concerns

CVS Group’s purchase of The Vet could be referred for an in-depth investigation after it was found that the deal raises competition concerns.

The Competition and Markets Authority (CMA) opened its investigation into CVS Group’s purchase of Quality Pet Care, which trades as The Vet, in December. Both firms are providers of veterinary services, with CVS Group owning 467 practices in the UK, while The Vet operates eight practices across England.

The CMA’s Phase 1 investigation found that the merger raises competition concerns in five local areas – Bristol, Nottingham, Portsmouth, Southampton, and Warrington.

The investigation found that the combined businesses would account for a significant proportion of veterinary services in each of these areas. While veterinary practices owned by CVS and The Vet currently compete for customers at each of these locations, the CMA is concerned that the combined businesses would not face sufficient competition after the merger. This could lead to pet owners facing a worse quality of service, including more limited treatment options, or having to pay higher prices, the CMA said.

In recent years, the ownership of vets’ practices across the UK has changed, with many practices being bought by a small number of corporate groups, such as CVS. Independent veterinary practices accounted for 89% of the UK industry in 2013, this share had fallen to less than 45% by 2021.

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.”

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 instead of referring the case to a Phase 2 investigation.