(Reuters) -Shares in Pets at Home dropped about 13% to a more than seven-month low on Thursday, after the UK’s antitrust watchdog launched a review into the veterinary services market amid concerns that pet owners might not be getting a good deal.
Pets at Home, which leads the British pet services market with a 24% market share, has significant veterinary operations providing both in-clinic and online services in almost two-thirds of its stores.
The Competition and Markets Authority (CMA) will look into the fees charged for veterinary services amid soaring costs of living, the regulator said.
Pet ownership and adoption has been rising since COVID-19 lockdown in 2020 and work-from-home lifestyles spurred demand for four-legged companions.
Shares in Pets at Home fell as much as 12.6% to 330.8 pence.
“There has been a lot of consolidation in the vet industry in recent years, so now is the right time to take a look at how the market is working,” CMA Chief Executive Sarah Cardell said in a statement.
The company in early August said its first-quarter vet business revenue grew 16.3%, helped by an increase in vet capacity. Pets at Home had also announced plans to consolidate its vet and retail support offices, in line with its strategy.
(Reporting by Prerna Bedi in Bengaluru; Editing by Rashmi Aich)
