CMA scrutinises Welltower's care home acquisitions

The Competition and Markets Authority (CMA) has published phase one of its investigation into four completed acquisitions of care home operators by Welltower Inc. This inquiry pertains to more than 600 properties combined managed by Barchester Healthcare, HC-One, Aria Care (including Asprey) and Danforth Care. The CMA's findings indicate that the transactions raise a “realistic prospect” of a substantial lessening of competition in several local markets. The regulator signalled that unless acceptable remedies are offered, the deals will proceed to an in-depth phase two investigation.

Commenting on the CMA's findings, Vicky Tomlinson, Partner and corporate health lead at UK and Ireland law firm Browne Jacobson, said, “The CMA’s latest decision on Welltower marks a significant moment for the UK adult social care sector.” She added, “What is particularly notable is the CMA’s focus not only on care operators themselves, but on the influence that institutional investors and property owners can exert over operational strategy, pricing, investment decisions and competitive dynamics. This reflects a wider shift in regulatory thinking.”

Tomlinson further explained that the independent health and care sector has garnered growing importance to institutional capital, infrastructure investors, and global real estate funds. “With that importance comes greater scrutiny with the UK regulator,” she stated. “Regulators are looking more closely at how ownership structures, operational alignment and market concentration may affect competition, resident choice and quality of care at a local level.”

This development represents a critical moment for providers, investors, and lenders as it highlights the CMA’s willingness to investigate consolidation across health and care markets locally. Tomlinson noted, “It signals a more interventionist approach from the CMA towards consolidation across health and care markets.”

Despite these regulatory challenges, she emphasised the continuing need for substantial investment, innovation, and modernisation within the sector to address rising demand and the complexity of care needs. The challenge lies in achieving appropriate regulatory oversight while avoiding the creation of unintended barriers that could hinder the capital required for sustainable growth and evolution.

“This is an important development for everyone involved in health and care transactions — and one the sector will be watching closely over the coming months,” concluded Tomlinson.