Exclusive / FTC to block $3.5B veterinary merger

The US Federal Trade combination lawsuit targets a proposed $3.5 billion acquisition involving major animal health supply companies. According to Reuters, the US FTC sued to block Cencora's sale of its veterinary unit to Covetrus. Partnering states and the FTC filed the legal action alongside Nebraska and other authorities to prevent what they describe as an anticompetitive acquisition, according to reports from chadronradio.com and WGME.\n\nState attorneys general have also taken individual legal action regarding the transaction. According to MLex and North Carolina Attorney General Jeff Jackson's office, North Carolina sued to stop the merger, with Jackson stating that the combination between veterinary supply distributors Covetrus and MWI Animal Health would raise prices for pet owners at a time when they are already paying more. Additional reports from MLex note that the New York attorney general warned the Covetrus-MWI merger would make veterinary care even harder to afford, while the California attorney general stated the deal would leave pet owners footing the bill.\n\nCovetrus has publicly responded to the regulatory challenge. PR Newswire published a statement from Covetrus concerning the FTC decision to challenge the proposed merger with MWI Animal Health. The coordinated legal challenges from federal and state regulators focus heavily on the financial impact the transaction could have on consumers and pet owners across the country.