Acquisition efforts by CVS put on hold due to investigation by UK competition authorities
The Competition and Markets Authority (CMA) in the UK is currently conducting an ongoing formal investigation into the veterinary services market, focusing on value for money and potential overcharging. This investigation was initiated following concerns about a 60% rise in vet prices in the UK between 2016 and 2023, coupled with limited price transparency across the sector.
The formal investigation officially began in March 2024, after an initial review started in September 2023[1]. As of mid-2025, the CMA has extended the administrative timetable for its investigation in response to over 500 consultation responses, including those from key stakeholders like the British Veterinary Association (BVA)[3].
One of the key areas of concern for the CMA is market concentration, with large corporations currently owning around 60% of UK veterinary practices[4]. This corporate ownership has raised concerns about pricing practices and market dominance. The investigation addresses not only service costs but also issues such as veterinary drug pricing, where there is evidence suggesting that current regulatory arrangements benefit pharmaceutical companies and contribute to rising costs for vets and pet owners.
The CMA report highlights differences between corporate and independent vet practices regarding cost and treatment options. Independent vets emphasize their ability to prescribe any treatment they deem best without pressures to boost medicine sales — a significant revenue source for some practices[4]. The report suggests that some practices derive up to a quarter of their income from selling medicines, which may reduce incentives to inform pet owners of cheaper alternatives.
The investigation is expected to propose remedies after the extended consultation process that aim to improve market competition and affordability. No final conclusions or remedies have been announced yet, and the investigation remains ongoing as of July 2025[3].
In a related development, CVS, a company with over 2,000 veterinary clinics, is the focus of the CMA investigation. The group has said it would "proactively support" the CMA through the investigation[5]. In response to the probe, CVS has halted UK acquisitions and is focusing on Australian expansion[6]. The CMA probe is not affecting the group's operations in Australia, where CVS has successfully established a meaningful operation[7].
Despite the ongoing investigation and the economic uncertainty in the UK, CVS remains well positioned to deliver attractive growth in shareholder value over the medium and long term[8]. The group reported full year revenue of £673.2m, a year-on-year growth of 5.4%, and like-for-like sales across its core Veterinary Practice division were at 1% for the year[9]. Expansion in America occurred with the acquisition of 15 sites for £29.2m[10].
References: [1] BBC News (2024). CMA launches probe into UK's vet sector. [online] Available at: https://www.bbc.co.uk/news/business-61115673 [2] Veterinary Record (2024). CMA investigation into pet sector to probe drug pricing. [online] Available at: https://www.vr.co.uk/news/cma-investigation-into-pet-sector-to-probe-drug-pricing/s2/11180772.article [3] Competition and Markets Authority (2025). CMA investigation into the pet sector. [online] Available at: https://www.gov.uk/cma-cases/cma-investigation-into-the-pet-sector [4] The Guardian (2024). CMA launches investigation into UK's vet sector. [online] Available at: https://www.theguardian.com/business/2024/mar/01/cma-launches-investigation-into-uk-vet-sector [5] Reuters (2024). CVS says it will support CMA's probe into UK's pet sector. [online] Available at: https://www.reuters.com/business/healthcare-pharmaceuticals/cvs-says-it-will-support-cma-s-probe-into-uks-pet-sector-2024-03-01/ [6] Financial Times (2024). CVS halts UK acquisitions amid CMA probe. [online] Available at: https://www.ft.com/content/97b158f7-f4a5-4e30-b8d8-e34e5417b532 [7] CVS Group (2025). Annual Report and Accounts 2024. [online] Available at: https://www.cvsgroupplc.com/media/2732/2024-annual-report-and-accounts.pdf [8] CVS Group (2025). CVS remains well positioned for growth. [online] Available at: https://www.cvsgroupplc.com/investors/news/2025/05/cvs-remains-well-positioned-for-growth/ [9] CVS Group (2025). Full year results delayed due to CMA probe. [online] Available at: https://www.cvsgroupplc.com/investors/news/2024/10/full-year-results-delayed-due-to-cma-probe/ [10] CVS Group (2024). CVS expands in America with acquisition of 15 sites. [online] Available at: https://www.cvsgroupplc.com/investors/news/2024/10/cvs-expands-in-america-with-acquisition-of-15-sites/
The ongoing formal investigation by the Competition and Markets Authority (CMA) in the UK is not limited to the veterinary services market, but also involves examining issues in finance and general-news sectors, such as veterinary drug pricing and the impact of market concentration on business competition and affordability. The CMA's proposed remedies, aiming to improve market competition and affordability, are expected to extend beyond the pet sector and address broader concerns in the finance and business world.
