CMA voices competition concerns over merger of E&J and Vorenta

Food producers and public bodies could be forced to pay more for inspections following the merger of two veterinary health service providers, regulators have claimed.

The Competition and Markets Authority (CMA) has given Eville and Jones (E&J) five working days to respond to its concerns over the Leeds-based firm’s acquisition of the Vorenta Group last year or potentially face a second phase inquiry.

E&J said it was “disappointed” by the announcement and considering options for how to respond.

Concerns

The two companies first announced their agreement to join forces in September 2022 in a deal estimated to give the combined business annual revenues of more than £50 million.

But concerns were raised at the time about the potential implications of the deal for the wider sector, and the CMA began its examination of the issue in November.

A summary of the authority’s findings published today (6 March) said a chance of a serious loss of competition was realistic as a result of the merger in four separate areas:

Four areas

• outsourced supply of meat official controls in England and Wales
• supply of export health certificates for products of animal origin (POAO) in Great Britain
• outsourced supply of OVs to conduct POAO border inspections at border posts in England
• outsourced supply of inspectors to conduct agricultural inspections for the Rural Payments Agency in England

‘Disappointed’

Sorcha O’Carroll, the CMA’s senior director of mergers, said: “The veterinary services supplied by the merging parties are important in ensuring the animal products sold in the UK are safe for human consumption and animal welfare standards are met.

“Losing the competition that takes place between Eville and Jones and Vorenta could result in food businesses and public bodies paying higher prices for inspections.

“Well-run inspections ensure consumers have access to safe and affordable food products, and that exporters can sell animal products without delays. Today’s decision will ensure businesses and consumers can get the best deal.”

An E&J spokesperson said: “We are currently assessing the decision issued by the Competition and Markets Authority today.

“We are disappointed by their decision. However, we are considering various options that should serve to either address or mitigate their concerns.”