Cencora's $3.5B Animal Health Sale to Covetrus Faces Deeper FTC Antitrust Review, Report Says

The U.S. Federal Trade Commission (FTC) is conducting an in-depth antitrust review of the proposed $3.5 billion merger between Cencora's MWI Animal Health and the privately held Covetrus, according to a Bloomberg News report on Tuesday. The heightened scrutiny suggests potential concerns that the combination of two leading national veterinary suppliers could harm competition.

Details of the Investigation

The FTC has reportedly escalated its review by issuing information demands to customers and competitors of the two companies last month. According to people familiar with the matter cited by Bloomberg, these requests seek to determine the deal's potential impact on the market for veterinary products and practice-management software.

Such requests for information are a common step in a more rigorous antitrust probe, often called a "second request," which goes beyond the initial review period. The agency is examining how consolidating these major players could affect product availability, pricing, and innovation for veterinary clinics that rely on their services and software to manage patient records, prescriptions, and payments.

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Strategic Context

Cencora announced its plan to sell MWI Animal Health to Covetrus in February. The company stated the divestment is part of a broader strategy to sharpen its focus on its core pharmaceutical distribution business and shed non-core assets.

The proposed transaction would create a dominant force in the animal health supply chain. For investors, a prolonged or challenging FTC review introduces uncertainty and could potentially delay or alter the terms of the acquisition. Cencora, Covetrus, and the FTC did not immediately respond to Reuters' requests for comment on the matter.