VetPartners’ completed purchase of Goddard could now be referred for an in-depth investigation after the CMA found that the deal raises competition concerns
The Competition and Markets Authority (CMA) opened its investigation into VetPartners Limited’s purchase of Goddard Holdco Limited, which trades as Goddard Veterinary Group, in March 2022. Both firms are providers of veterinary services. VetPartners, owned by the private equity firm BC Partners, operates approximately 550 sites across the UK, while Goddard, a family-owned business, 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. 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 1 investigation into VetPartners’ acquisition of Goddard, the CMA has found that the merger raises competition concerns in 11 local areas across Greater London.
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 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 has 5 working days to offer legally-binding proposals to the CMA to address the competition concerns identified. The CMA would then have a further 5 working days to consider whether to accept these instead of referring the case to a Phase 2 investigation.
For more information, visit the VetPartners / Goddard merger inquiry case page.
Notes to Editors