Regulator throws VetPartners’ acquisition of Goddard Veterinary Group into doubt 

VetPartners’ acquisition of the Goddard Veterinary Group has been thrown into doubt after an investigation by the Competition and Markets Authority (CMA) raised serious competition concerns about the deal.

The CMA served an initial enforcement order in November 2021, which effectively forced both practice groups to continue operating as separate entities, before launching its initial probe into the deal in March this year.

Now that investigation has been completed, the regulator has raised concerns about the merging of VetPartners, which is owned by the private equity firm BC Partners and operates approximately 550 sites across the UK, and Goddard, a family owned business that operates 47 sites in Greater London.

Competition concerns

In a statement released today (28 April), the CMA said: “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. VetPartners, like most of these corporate groups, not only owns and operates local vet practices, but also has broader activities within the veterinary sector, owning other businesses including diagnostic laboratories, locum agencies, and crematoria.

“Following its phase one investigation into VetPartners’ acquisition of Goddard, the CMA has found that the merger raises competition concerns in 11 local areas across Greater London.”

‘Higher prices’

The CMA’s 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 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, it says, could lead to pet owners facing a worse quality of service, including more limited treatment options, or having to pay higher prices.

‘Significant impact’

Colin Raftery, senior director of mergers at the CMA, said: “Close to 60% of UK households own a pet and, when veterinary care is needed, the cost of care can have a significant impact on already-stretched household budgets.

“Like CVS’ recent acquisition of The Vet, 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.”

Second investigation

VetPartners now 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 two investigation.

Update: 15:30, 28 April

Responding to the CMA’s announcement, Jo Malone, chief executive of VetPartners, said: “We are naturally disappointed by the CMA decision, and will consider all our options in light of their decision.

“VetPartners has fully assisted the CMA and we have gained a good understanding of how they are approaching the issues they perceive.

“We intend to focus on our primary aim of providing the highest quality of patient care, while improving working environments for our teams and providing an excellent experience for our clients. The CMA decision does not change that.

“We will not be making any further comment at this stage.“

• For more information, visit the VetPartners/Goddard merger inquiry case page.