The UK's care home sector is facing intense scrutiny as the Competition and Markets Authority (CMA) extends its probe into Welltower Inc.'s merger with Apex Healthcare Properties. The regulator has given the companies until 17 September 2026 to come up with proposals addressing competition concerns, following a preliminary finding that these deals could significantly reduce competition in the UK care home market.
The CMA's investigation centres around Welltower's acquisitions of more than 600 operational care homes from prominent providers such as Barchester Healthcare, HC-One, Aria Care (including Asprey), and Danforth Care. These transactions have raised concerns about potential market dominance and the implications for the provision of care services across the country.
The CMA is also examining related arrangements that could constitute relevant merger situations involving other key players. Specifically, the inquiry is looking into potential mergers between Care UK Care Services Limited and Aria Care, either independently or in conjunction with Welltower. Additionally, Apex Healthcare Properties and HC-One are under scrutiny for potential merger situations, again either on their own or alongside Welltower.
The CMA's preliminary finding indicated that these mergers have or may lead to a substantial lessening of competition across various markets in the United Kingdom. Unless acceptable undertakings are offered by Welltower and Apex to mitigate these concerns, the mergers face referral for an in-depth, Phase 2 investigation, which could involve divestitures or other remedies to restore competition.
For UK households, particularly those with elderly relatives or planning for future care needs, the outcome of this investigation is significant. A reduction in competition could lead to fewer choices for care services, potentially impacting quality and increasing costs. While the immediate financial impact on individuals is not yet clear, a less competitive market could see care home fees rise faster than inflation, putting further pressure on household budgets already strained by the cost of living.