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Price War Set to Hit the U.K. Funeral Sector Over CMA Probe | Bloomberg

Shares of the U.K.’s largest publicly-traded funeral firm, Dignity Plc, dropped as much as 18 percent as the competition watchdog warned that recent tariff reductions by British undertakers haven’t been enough to tackle years of hikes in the industry.

Price increases over the past decade, particularly by larger chains, can’t be justified by higher costs or quality improvements, the Competition & Markets Authority said Thursday, while proposing a major probe into the industry by an independent CMA panel.

Dignity’s latest stock decline extended its year-to-date drop to about 54 percent. It plunged in January as news of a price war in the sector emerged. The Sutton Coldfield, England-based company reported a slump in quarterly profit earlier this month amid huge price reductions aimed at fending off the threat of its biggest rival, Co-Operative Funerals Ltd., as well as smaller market entrants.

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Price War Set to Hit the U.K. Funeral Sector Over CMA Probe – Bloomberg.