CVS Shares Surge 12% After CMA Ends Investigation

Published 5 hours agoCVS

CVS Shares Surge 12% After CMA Ends Investigation

Shares of CVS Group plc jumped by 12% after the UK’s Competition and Markets Authority (CMA) closed its investigation into the company. The probe, which began in May 2024, was part of a broader examination into the UK’s £5 billion veterinary sector, focusing on concerns about pricing and transparency.

There were initial fears that the CMA might enforce stringent measures like capping prescription fees or demanding asset sell-offs, as reported by fool.co.uk. However, the situation took a positive turn as CVS offered to sell its subsidiary, The Vet, leading to the conclusion of the investigation. This move was formally accepted by the CMA, calming investor concerns and driving the recent surge in share price, as detailed on advfn.com.

CVS has been strategically reshaping its portfolio, having already offloaded loss-making operations in the Netherlands and Republic of Ireland to concentrate on more profitable markets. According to lse.co.uk, CVS is steadfast in its growth ambitions, including plans to expand within the Australian veterinary market, while maintaining support for the CMA's ongoing sector review.

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