As takeover rumors die down, Pets at Home stock price returns closer to normal

Multiple apparent bidding vehicle companies registered in connection with the private equity firm BC Partners sparked rumors about the acquisition of the pet retailer. However, it denied planning a takeover in a statement to the Financial Times (FT).

The speculation began over a registered company called Pug Bidco, which some believed would buy up Pets at Home. The name was registered under BC Partner Michael Chang, who was part of the team that took PetSmart private a decade ago.

This fueled a week of strong share price growth, which declined on 27 February when BC Partners poured water on the story. “Pug Bidco is nothing to do with Pets at Home,” a BC Partners spokesperson told FT. “We are not involved here at all.”

The decline slowed in the following days. However, as of 3 March, the stock price was still above its pre-rumor level.

Regulatory probe

The speculation began when the UK government started probing Pets at Home’s veterinary revenue. Amid strong growth in the vet sector, the competition regulator launched an investigation into its practices.

The Competition and Markets Authority (CMA) recently undertook a broad probe of the country’s veterinary services market prices in 2023. It has focused on companies like Pets at Home buying up many of the UK’s vet practices, which may have led to an increase in consumer prices.

This has caused problems for the company as its strongest sector faces scrutiny and possible regulation in the future. In its most recent earnings report, Pets at Home posted a vet revenue growth of 21.3% in the 3 months to January 2025, with like-for-like revenue increasing by 19.9%.