Pets at Home shares soared 14 percent on February 26 following speculation that private equity firm BC Partners is preparing a takeover bid.

Investor discussions intensified after multiple bid vehicles, including Pug Bidco Limited, were registered on February 24. These entities share an address with BC Partners’ London office, and their listed director matches the name of Michael Chang, the firm’s New York-based co-head of healthcare. Chang is also linked to BC Partners’ investment in US pet retailer PetSmart, fueling further speculation about a potential deal.

At 11:48 GMT, Pets at Home shares traded at 263p, reflecting increased market confidence despite regulatory concerns. The stock has faced pressure due to an ongoing investigation by the UK’s Competition and Markets Authority into the veterinary sector. The probe, launched after receiving over 56,000 responses from pet owners and industry professionals, focuses on rising medicine costs and reduced competition due to industry consolidation.

While investors fear stricter regulations, analysts at Jefferies believe the CMA will push for greater transparency rather than impose price controls. Pets at Home has relied heavily on its veterinary business for growth, with like-for-like sales rising 19.9 percent in the 12 weeks to January 2. However, retail revenue fell by 2.8 percent over the same period.

The CMA’s latest update, published on February 6, highlighted concerns over limited consumer choices and veterinary price increases exceeding inflation. Despite this, Jefferies analysts noted that profit margins have remained stable, making drastic regulatory intervention unlikely.

BC Partners has not confirmed its interest in Pets at Home, but the developments suggest private equity remains highly active in the UK pet care sector.