The Competition and Markets Authority (CMA) has formally launched an investigation into Healthcare Ireland's acquisition of Hutchinson Care Homes, four months after ordering the businesses to remain separate while it considered whether the deal warranted closer scrutiny.
The watchdog said its Phase 1 merger inquiry into the completed acquisition of Hutchinson Homes by Y3 Holdings Limited, Healthcare Ireland's parent company is now open and aims to publish the outcome by early December.
The move follows the CMA's initial enforcement order in June, which prevented Healthcare Ireland from integrating the businesses while the regulator gathered information on the transaction.
Healthcare Ireland announced the acquisition of the family-owned Hutchinson group last year, adding six care homes across County Antrim to its portfolio. At the time the CMA intervened, Healthcare Ireland operated 38 homes across Northern Ireland.
The regulator has not publicly detailed the competition concerns underpinning its review but has invited submissions from interested parties and is now considering whether the transaction could result in a substantial lessening of competition in local care home markets.
The case comes after the watchdog’s recent conclusion of an extensive investigation into a series of Welltower acquisitions involving more than 600 care homes operated by providers including Barchester Healthcare, HC-One, Aria Care and Danforth Care.
The probe concluded that the transactions raised competition concerns in multiple local markets and triggered a package of disposals and operator changes designed to avoid a more detailed Phase 2 investigation.
The firms benefiting from the sale and operator deals included Healthcare Ireland.
Industry lawyers and investment advisers previously told The Care Home Environment that the Welltower case signalled a tougher approach to local market concentration and demonstrated the regulator's willingness to intervene where transactions could reduce choice for residents, families and commissioners.
