VetPartners’ purchase of Goddard raises ‘competition concerns’

VetPartners’ completed purchase of Goddard raises competition concerns, according to the Competition and Markets Authority (CMA).

The CMA opened its investigation into VetPartners’ purchase of Goddard Holdco Limited, which trades as Goddard Veterinary Group, in March. VetPartners, owned by the private equity firm BC Partners, operates about 550 sites across the UK, while family-owned Goddard operates 47 sites in Greater London.

As with the CMA’s recent investigation into CVS’s purchase of The Vet, this deal takes place against a backdrop of a small number of corporate groups – including VetPartners – buying up large numbers of independent practices and local chains of vets across the UK. The CMA has received a number of complaints in recent years about higher prices or lower quality services as a result of multiple vets’ practices in the same local area being owned by a single company.

The CMA’s phase 1 investigation into the deal found that the merger raises competition concerns in 11 local areas across Greater London, as the combined businesses would account for a significant proportion of veterinary services in each of these areas. While veterinary practices owned by VetPartners and Goddard 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.

Colin Raftery, Senior Director of Mergers, at the CMA, said: “VetPartners’ acquisition of Goddard would result in too many vets’ practices in the same area being under the control of a single company, raising the risk of higher prices or lower quality services.

“Unless our concerns are addressed, we will refer this deal for an in-depth investigation to ensure that pet owners don’t lose out.”

VetPartners has five working days to address the CMA’s competition concerns. 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.