Petstock to divest quiet takeovers after ACCC red flag

The news: Pet store and veterinary clinic owner Petstock has offered to divest scores of assets after the ACCC uncovered a host of takeovers that raised competition concerns while reviewing a proposed 55% acquisition of the group by Woolworths.

The numbers: Petstock completed numerous takeovers between 2017 and 2022 that were not reported to the ACCC. By law, the ACCC can apply for court-ordered divestiture of assets acquired in breach of merger rules for up to three years after the transaction. Petstock is proposing to offload 41 pet retail stores, 25 co-located veterinary hospitals, four brands and two online retail stores.

The context: The ACCC opened an enforcement investigation into Petstock earlier this year, and will be consulting on the proposed divestment until 1 November 2023.

What they said: "During the current Woolworths, Petstock merger review, market participants expressed concerns about the already significant consolidation that had occurred within specialty pet retail in recent years," ACCC Commissioner Stephen Ridgeway said.