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FTC Probes $3.5B Vet Product Deal
5 Aug
Summary
- FTC investigates Cencora's MWI Animal Health acquisition of Covetrus.
- The deal's impact on veterinary product availability is under review.
- Antitrust agency sought customer and rival input on the $3.5 billion merger.
The U.S. Federal Trade Commission is actively investigating a significant proposed acquisition valued at $3.5 billion. This deal would unite two major national suppliers of veterinary products: Cencora's MWI Animal Health and the privately held company Covetrus. This scrutiny indicates a thorough antitrust review by the agency.
Last month, the FTC reportedly issued information requests to both customers and competitors of Covetrus and MWI Animal Health. These requests aim to gather detailed insights into how the proposed merger might affect the market. Specifically, the agency is examining the potential consequences for the availability of essential veterinary products and practice-management software used by clinics.
Cencora had previously announced in February its intention to divest MWI Animal Health to Covetrus. This strategic decision by Cencora was part of its effort to concentrate more on its core drug distribution business and streamline operations by selling off non-essential assets.
