CVS, Pets at Home slip as CMA extends probe into veterinary sector

(Sharecast News) - Shares in Pets at Home and CVS Group were in the red on Tuesday after UK regulators announced a six-month extension to their investigation into pricing practices and competition in the veterinary sector. The Competition and Markets Authority, which first launched a review of the sector in September 2023, said it was now aims to publish provisional findings in September and a final decision by February 2026, rather than the end of November 2025 as originally intended.

The probe was launched after concerns were raised over four key areas: pricing structures for veterinary services, a lack of competition (with six large corporate groups owning 60% of practices in the UK) medicine costs and outdated regulation.

In announcing the deadline extension, the CMA also published a blog by inquiry chair Martin Coleman, explaining the extra time was needed to "fully consider the responses we have received on our proposed remedies".

"This is not a decision we have taken lightly. We understand the value of providing greater certainty to the many stakeholders - not least the vets, nurses, receptionists and other hardworking frontline staff - affected by this work and delivering outcomes as quickly as possible is a key objective for the CMA," Coleman said.

In a statement to the markets on Tuesday, CVS Group - the largest integrated veterinary services provider in the UK - said it welcomed the extension and "continues to actively engage with the CMA", providing feedback on concerns which the regular has identified.

"CVS was among those who gave detailed feedback to the CMA on its remedy package, in which it outlined support for the CMA's focus on transparency and improving communication, but also outlined many aspects of its initial package that CVS believed to be unduly cumbersome for vets and even more critically would not empower consumers to make better choices," the company said.

"CVS also gave the CMA feedback on remedies that it believed would unduly constrain clinical freedom of vets, which must remain sacrosanct."

The company acknowledged that shareholders may be "understandably disappointed by the continued uncertainty".

Shares were down 1.6% at 1105 BST, having dropped as much as 4.8% earlier on, while Pets at Home was also trading lower.