Concerns over patient choice and service levels following the planned takeover of Tesco Opticians by Vision Express have been raised by the Competition and Markets Authority (CMA).
As part of its initial investigation, the CMA looked at more than 200 local areas where the multiples both had practices. The CMA identified three areas where Vision Express would not face sufficient competition after the merger, which the regulator said could lead to price increases or a worsening in the quality or choice of the products and services on offer in-store.
The locations were in Barrow-in-Furness in Cumbria, Helston in Cornwall and Ryde on the Isle of Wight.
Vision Express now has the opportunity show it has addressed the CMA’s concerns. If the proposals fall short of CMA requirements, the planned acquisition will move on to the next level of investigation.
Adam Land, CMA senior director and decision maker in this case, said: ‘Opticians provide a vital service for millions of people in the UK and it is therefore important that any competition concerns are addressed. In this case, we have looked carefully where Vision Express and Tesco Opticians compete at present and identified three areas of the country where we believe this merger could result in a worse deal for eye care customers.’
Responding to the decision, Vision Express CEO Jonathan Lawson said: ‘We are happy the CMA will consider proposals to resolve the competition concerns it has identified in areas where Vision Express is acquiring Tesco Optician stores.
‘Vision Express is committed to providing suitable remedies to the CMA in order to avoid the acquisition being referred to a phase two investigation, which would prolong uncertainty for all involved.
‘We are now working on undertakings to allow the CMA to clear the acquisition so we can move forward with integrating Tesco Opticians into our estate. We argued strongly for unconditional clearance and we will place a high priority on ensuring a smooth transition for our employees and customers as we work through the process.’