CVS Group: CMA results as expected

The long-awaited first conclusions of the Competition and Markets Authority (CMA) investigation into the vets market were published in a working paper yesterday. As we’ve been saying all along, the proposed remedies are relatively benign for CVS Group: there is talk about more price transparency needed, but no really tough measures were suggested that could seriously impact CVS’s profitability. These aren’t the final results yet, we’ll have to wait a few more months for those, but generally the end result won’t deviate much from what is proposed in the working paper. So it looks like the impact for CVS will be relatively small and now that the uncertainty is lifted, the share price can recover. The share price was already up 12% yesterday, and up 50% since New Year, but it is still well below the levels it was at before the CMA investigation began (above 2,000 p), so I think it still has some room to run in the coming days and weeks.