US Healthcare Giant Faces UK Watchdog Scrutiny Over Care Home Acquisitions
The Competition and Markets Authority (CMA) has opened a formal investigation into major property deals that could reshape the ownership landscape of more than 600 care homes across the country.
The Competition and Markets Authority confirmed it is examining multiple transactions involving Welltower Inc, an American healthcare real estate investment trust, and several prominent UK care providers including Barchester Healthcare and HC-One.
The watchdog has imposed interim measures requiring HC-One and Welltower to maintain separate operations whilst the investigation proceeds. Such enforcement orders are standard practice during merger reviews to prevent premature integration.
According to official documentation, the CMA’s inquiry encompasses 46 separate property transactions spread across arrangements with four operators: Barchester, HC-One, Aria Care and Danforth Care. These deals collectively involve facilities throughout England, including significant numbers in the North East.
HC-One, which maintains its headquarters in Darlington, operates extensively across the region alongside Barchester’s numerous sites.
Welltower describes itself as a real estate investment trust specialising in senior living and healthcare properties. The company, publicly traded in New York, reports a market value exceeding $135 billion and owns interests in over 2,000 senior housing communities spanning the United Kingdom, United States and Canada.
The CMA initiated its enforcement order on 3 February following a consultation period that began in mid-January. The regulator has not yet published a timetable for completing its assessment.
Corporate filings from October reveal the substantial scale of Welltower’s UK expansion strategy. The company disclosed acquiring Barchester’s property portfolio for approximately £5.2 billion, encompassing 111 operating facilities, 152 sites under long-term lease arrangements, and 21 properties currently under development.
The documentation indicates Welltower has established what it describes as an “exclusive long-term partnership” with Barchester as part of the arrangement.
Regarding HC-One, Welltower reported purchasing complete equity ownership of the operator’s UK portfolio for £1.2 billion in October, whilst simultaneously settling an existing £660 million loan facility.
The CMA’s investigation will examine whether these consolidated ownership arrangements could reduce competition in local care home markets or otherwise harm consumer interests.
