CMA seeks remedies in veterinary merger to avoid Phase 2 investigation

 

CMA seeks remedies in veterinary merger to avoid Phase 2 investigation

The CMA will refer the completed acquisition by CVS Group plc of Quality Pet Care Ltd (trading as The Vet).) to a Phase 2 merger investigation unless acceptable remedies (‘undertakings in lieu of reference’) are offered.

CVS operates over 450 veterinary practices across the UK.  The Vet is a chain of eight small animal veterinary practices in the UK.  The CMA has identified competition law concerns in the local areas of Bristol, Nottingham, Portsmouth, Southampton and Warrington where the merged businesses would account for a significant proportion of veterinary services in each of these five areas.

The parties now have five working days (until 25 February 2022) to offer acceptable undertakings in lieu to the CMA.

The CMA’s approach indicates that it remains concerned to address competition issues whether they arise in national, regional or local markets.  Even though the UK operates a voluntary merger control system where there is no obligation to seek merger clearance in advance, it is a reminder of the competition law risks for merging parties completing a transaction where there are overlaps in local markets.

https://www.gov.uk/government/news/cvs-takeover-of-the-vet-raises-competition-concerns