CMA extends U.K. vet services probe to 2026, Jefferies cites investor disappointme

Published 10/06/2025, 13:06
© Reuters

Investing.com -- The U.K.’s Competition and Markets Authority (CMA) has extended the possible reference period for its market investigation into the supply of veterinary services for household pets in the U.K. to May 22, 2026. 

This extends the previous deadline of November 22, 2025. “We expect this announcement to disappoint some who were hoping for a resolution to this investigation by the end of the year to allow the investment debate to focus on fundamentals,” said analysts at Jefferies in a note. 

The CMA Inquiry Group determined the original deadline was not achievable due to several factors. 

These include the extensive volume and specific nature of concerns raised in detailed submissions received from independent veterinary practices and individual veterinarians.

These submissions, primarily in response to a Remedies Working Paper issued May 1, largely focused on the effectiveness, costs, and burdens of proposed remedies. 

Furthermore, concerns were raised in detailed submissions from the six large veterinary groups to whom Profitability and Econometric Working Papers had been disclosed, with additional responses anticipated. 

The CMA also cited the need for further engagement, recognizing that any proposed remedies could significantly impact thousands of veterinary professionals, businesses, and millions of consumers and pets over a considerable period.

Jefferies maintains a "hold" rating on CVS Group, with a price target of 1,250 pence, which is 3% below its current price of 1,290 pence as of the prior trading day. 

Key risks identified by Jefferies include veterinarian shortages, wage inflation, and competition for mergers and acquisitions targets.

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