Bundeskartellamt clears acquisition of Tierklinik Hofheim by veterinary hospital chain IVC Evidensia

Following intensive investigations the Bundeskartellamt has cleared the acquisition of Tierklinik Hofheim (Taunus region, Germany) by the internationally active veterinary hospital chain Evidensia.

Andreas Mundt, President of the Bundeskartellamt: "We are seeing tendencies towards concentration also in the area of veterinary medicine. Investors acquire participations in practices and clinics, and veterinary hospital chains take over individual facilities. Most of these processes are not subject to merger control by the Bundeskartellamt, because the turnovers of practices and clinics are below the statutory threshold of 17.5 million euros, above which an acquisition must be notified. This case was different. Following intensive investigations we have nevertheless cleared the acquisition of what is assumed to be Germany’s largest veterinary clinic in Hofheim by the veterinary hospital chain Evidensia. Although Evidensia is expanding its strong position in the region, animal owners will still have sufficient treatment alternatives in the greater Frankfurt area even after the acquisition."

Tierklinik Hofheim (Taunus region) describes itself as a referral clinic with a supra-regional catchment area. It employs approximately 90 veterinarians. Evidensia is part of the IVC group which, according to its own statements, is active in 19 countries and owns a network of over 2,300 veterinary clinics. It is represented in Germany with 60 veterinary practices and clinics. Financial investor EQT holds a majority stake in Evidensia.

After interviewing more than 50 competitors and talking to professional chambers and professional associations, the Bundeskartellamt could not determine any significant impediment to competition. To assess the market significance of the parties to the merger, the authority looked inter alia into the market situation of veterinary clinics employing at least ten veterinarians and/or using sophisticated technical equipment like CT or MRI in the greater Frankfurt area. Even if Evidensia already operates a veterinary clinic in Kalbach, which is approximately 20 km away from the clinic in Hofheim, there are sufficient alternatives in the region. Germany’s largest veterinary medicine chain AniCura is an important competitor. There are also independent veterinary clinics (Dr Trillig, Tierklinik Bockenheim) and practices in Frankfurt and its surroundings.

The Bundeskartellamt found in its investigations that independent veterinarians mostly do not consider the ties between clinics and practices to be problematic, because also large chains depend on their referrals. In addition, as not all independent practices are willing to sell their business to large chains, medium-sized providers of veterinary medical services in Germany which are not linked to large corporations can currently still expand their business.