The Competition and Markets Authority (CMA) has accepted proposals by US real estate investment trust Welltower to sell off and change operator of some of its care home portfolio in response to the regulator's anticompetitive concerns.
The CMA said Welltower has offered to "sell its ownership of a number of care home properties" and "reallocate operations to new operators" for others after the regulator's initial investigation raised concerns the US firm's takeover of over 600 UK facilities could lessen competition in 30 areas.
Its investigation was sparked after the firm took over four portfolios of care home properties previously owned and operated by Barchester Healthcare, HC-One, Aria Care (including Asprey) and Danforth Care. As part of the transaction, new operators (including Care UK and Apex Healthcare Properties via Barchester Healthcare) took over the day-to-day management of the care homes.
The CMA raised concerns in its phase one decision two weeks ago that the deal could 'potentially lead to higher prices or a reduction in service quality for care home residents in these areas', and asked the firm to suggest a remedy or face a fuul phase two investigation, which could have taken up to six months to complete.
The CMA said today that it 'believes' the Welltower proposal 'could resolve its competition concerns' and said it would 'consult on the remedies package and the potential purchaser(s) in due course.'
Sorcha O’Carroll, Senior Director of Mergers at the CMA, said: “It’s crucial that older people and their families choosing care homes get the best care available at a reasonable price.
"Effective competition amongst providers can help boost choice, improve quality and keep costs down, all of which are important factors for making sure people are properly looked after.
“We had concerns that Welltower’s deal to purchase over 600 sites could create competition issues in several local areas across England and Scotland.
"Having engaged closely with the businesses, we believe Welltower has a solution that could resolve those concerns, allowing us to clear the deal and maintain competition at the same time," she added.
