Eville & Jones and Vorenta are leading providers of specialised veterinary services that support the UK food supply chain
The Competition and Markets Authority (CMA) has highlighted concerns over Eville & Jones' acquisition of Vorenta, as it could mean costlier and lower quality inspections for the food industry.
Following its initial investigation, the CMA said it had found 'competition concerns' in the supply of meat hygiene inspections in England and Wales.
These inspections are required for abattoirs and other meat establishments to be able to operate.
Eville & Jones and Vorenta are leading providers of specialised veterinary services that support the UK food supply chain.
If Eville & Jones' acquisition of Vorenta went ahead, it could meat more expensive and lower quality inspections for the food industry, the CMA warned.
Both companies perform essential inspections on behalf of public bodies and for private companies ensuring that animal products are safe for human consumption.
The CMA said it had also found concerns in relation to the supply of export health certificates which are required by exporters of animal products out of Britain.
And concerns were highlighted regarding the supply of border control inspection services of animal products coming into the UK, and in the supply of agricultural inspection services in England.
The CMAā€™s investigation found that the combined businesses would account for a significant proportion of these specialised veterinary services providers in Britain.
This could lead to a 'significant lessening of competition' and result in higher costs for food businesses and lower quality in the provision of these services.
Sorcha Oā€™Carroll, CMA senior director of mergers said: "The veterinary services supplied by the merging parties are important in ensuring the animal products sold in the UK are safe for human consumption and animal welfare standards are met.
"Losing the competition that takes place between Eville & Jones and Vorenta could result in food businesses and public bodies paying higher prices for inspections.
"Well run inspections ensure consumers have access to safe and affordable food products and that exporters can sell animal products without delays."
Eville & Jones now has five days to address the concerns highlighted by the UK's competition watchdog.