Pet healthcare giant CVS is planning to recommence efforts to buy smaller rivals in the UK after regulators concluded plans for a looming shake-up of the sector.
The Competition and Markets Authority last month published a set of 21 remedies designed to crack down on soaring UK vet prices, which have been even more acute among the sector’s largest firms.
The CMA had previously raised concerns that rapid consolidation of the sector had exacerbated price inflation, amid weaker levels of competition.
While the CMA’s proposals included a new £16 price cap on prescriptions and measures to improve price transparency, the regulator stopped short of imposing more stringent rules such as a ban on bonuses linked to offering specific treatments.
CVS told investors on Tuesday that ‘following the conclusion of the CMA process’ it is now ‘confident of a return to acquisitions in the UK’.
The group had supercharged UK growth by buying up smaller rivals, such as The Vet chain which it bought in 2021. But CVS put its takeover strategy on pause when the CMA launched its investigation.
Rising costs: The CMA had previously raised concerns that rapid consolidation in the sector had exacerbated price inflation
Takeover efforts were instead redirected to the Australian market, where CVS has made two acquisitions this year alone at a cost of £23.6million.
CVS said confirmation of the CMA’s plans, which are set to be finalised in the spring, brings ‘additional certainty’.
The group has previously said the conclusion of the CMA’s process provides enough certainty for CVS to push for a promotion to the main market of the London Stock Exchange.
CVS told investors on Tuesday it expects the move to take place early next year, adding that it does not intend to raise funds in connection with the admission, which is not conditional on shareholder approval.
It came ahead of the group’s annual general meeting as it revealed sales growth of 5.7 per cent in 2025, as CVS’ Healthy Pet Club grew from 507,000 to 520,000 members by the end of October.
CVS said: ‘The board remains mindful of continued headwinds in the UK particularly ahead of the UK Government budget.
‘However, the fundamental need for high-quality veterinary care remains strong, the growth opportunities in Australia are abundant and, following the conclusion of the CMA process, the group is confident of a return to acquisitions in the UK.
‘CVS remains well positioned to deliver attractive growth in shareholder value over the medium term.’
CVS shares were up 0.7 per cent to 1,138p in early trading.
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