The U.S. Federal Trade Commission (FTC) is conducting a closer review of a proposed $3.5 billion merger between two major national suppliers of veterinary products, according to a report from Bloomberg News. The deal involves Cencora’s MWI Animal Health division and the privately held animal health company Covetrus. (Reuters)
As part of its ongoing antitrust assessment, the FTC issued information demands to rivals and customers of both companies. These regulatory requests aim to gather key details regarding how the combination of MWI Animal Health and Covetrus might affect market competition, specifically looking at the availability and pricing of veterinary products across the country. Additionally, officials are evaluating the potential impact on practice-management software, which veterinary clinics rely on heavily to track patient records, manage prescriptions, and handle client billing.
The proposed transaction was first announced in February, when Cencora revealed plans to sell MWI Animal Health to Covetrus. The move aligns with Cencora’s broader corporate strategy to streamline operations, divest non-core business assets, and sharpen its primary focus on pharmaceutical distribution. Combining MWI with Covetrus would consolidate two significant players in the veterinary supply chain, prompting close attention from federal antitrust authorities seeking to prevent market concentration that could harm clinics or pet owners.
Neither the FTC nor representatives from Cencora and Covetrus immediately responded to requests for comment regarding the status of the regulatory inquiry.
