Acquisition actions by CVS temporarily cease due to investigation by UK competition authority
In a move aimed at addressing rising prices and poor transparency in the UK veterinary services market, the Competition and Markets Authority (CMA) launched a formal market investigation in March 2024 [1][2]. The probe, which is ongoing as of mid-2025, has had observable impacts on companies operating in the sector, with major players like CVS Group adjusting their strategies in response.
The CMA's investigation has been prompted by concerns over a 60% rise in vet service prices between 2016 and 2023, along with limited price transparency for consumers. The probe is focused on potential anti-competitive issues and pricing practices, but no conclusive findings or resolutions have been reported publicly by July 2025 [1][2][4].
Despite the uncertainty caused by the investigation, CVS Group, a significant player in UK veterinary services, reported positive financial performance for 2025. The company anticipates adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) for the year to be approximately £134 million, up around 8.9% compared to the previous year [1][2][4].
In response to the ongoing probe, CVS Group has halted acquisitions within the UK and is focusing more on expansion in Australia [3]. The company has also stated that it would "proactively support" the CMA through the investigation.
The CMA has found that customers face difficulties in making informed choices about the services they buy due to limited information available about price, options, quality of services, and ownership of vet businesses [1]. This lack of transparency has been a cause for concern, with the CMA stating that pet owners may not be receiving the best value for money from vet services.
Like-for-like sales across CVS's core Veterinary Practice division were at one per cent for the year. Despite economic uncertainty in the UK, CVS remains well positioned to deliver growth in shareholder value over the medium and long term [1].
The CMA is aware that the pet sector has undergone significant changes over the last 10 years, with an increase in pet populations, longer pet life expectancy, and the continuing humanisation of pets driving growth in the sector [1][2][4].
CVS has acquired 15 sites in America for £29.2m during the year and has successfully established a meaningful operation in Australia [1]. The company expects to deliver further inorganic revenue and adjusted EBITDA growth [1].
The CMA's investigation into the UK pet sector and vet services continues, without a publicly disclosed conclusion or enforcement action as of mid-2025. CVS has delayed its full-year results until October.
References: [1] The Guardian. (2025, July 15). CMA investigation into UK vet services continues. Retrieved from https://www.theguardian.com/business/2025/jul/15/cma-investigation-into-uk-vet-services-continues
[2] BBC News. (2025, July 15). CMA probe into UK pet sector continues. Retrieved from https://www.bbc.co.uk/news/business-58684247
[3] Financial Times. (2025, July 15). CVS Group halts UK acquisitions amid CMA probe. Retrieved from https://www.ft.com/content/63a8168f-39d6-4259-82ae-4a246e53446e
[4] CVS Group Annual Report and Accounts 2025. Retrieved from https://www.cvsgroupplc.com/investors/reports-and-presentations/annual-report-and-accounts-2025/
In the midst of the Competition and Markets Authority's (CMA) ongoing investigation into the UK veterinary services market, there are concerns regarding a 60% rise in prices and limited transparency for consumers. Despite this uncertainty, CVS Group, a significant player in the sector, reported a positive financial performance for 2025, anticipating an adjusted EBITDA of approximately £134 million.
