Britain's competition watchdog has given private equity-owned veterinary chains a free pass to continue consolidating the £6.7bn market. The Competition and Markets Authority ruled that six major players controlling 60% of the market can keep growing without divestitures or price controls beyond tiered prescription caps, sending shares in CVS Group and Pets at Home higher.

Share prices in CVS Group and Pets at Home jumped following the decision, while IVC Evidensia — the largest player with 20% market share and preparing for a multibillion-pound flotation — welcomed the outcome. The ruling requires only basic transparency measures like displaying prices and disclosing ownership structures, doing little to address the 20% premium big chains charge over independent practices.

The decision reflects the CMA's alignment with the government's pro-growth agenda, following a year when it approved all 36 merger reviews — the first clean sweep in nearly a decade. Private equity has been consolidating veterinary services similar to healthcare sectors like care homes and fertility clinics, with regulators now turning their attention to dental markets where more intervention may be forthcoming.

Britain's status as a nation of animal lovers — with six in ten households owning pets — hasn't translated to meaningful competition in veterinary services. The CMA's findings revealed that acquisition-driven consolidation has enabled chains to maintain chunky mark-ups averaging 10% on drugs and consultations, leaving consumers with limited alternatives despite new transparency requirements.