California Joins FTC in Blocking $3.5 Billion Veterinary Supply Merger

According to the joint investigation, the merger would significantly reduce competition in the market, leading to higher costs for veterinary clinics and pet owners in California. The lawsuit, filed in the U.S. District Court for the Southern District of New York, emphasizes that the merger would eliminate one of the primary alternative suppliers available to veterinary practices, giving the combined company significant power to raise prices and impose unfavorable contract terms (ID: 1). This would leave veterinary practices with fewer options to navigate product shortages, delivery delays, and inventory disruptions. [1]

The coalition also notes that veterinary practices currently rely on multiple distributors to ensure continuity of care. For example, when one supplier experiences a shortage of a critical vaccine or prescription medication, clinics can turn to the other to maintain service. Combining Covetrus and MWI would eliminate this important safeguard, increasing the risk of product shortages, reduced delivery frequency, and diminished service quality (ID: 1). The lawsuit seeks to block the transaction to preserve competition in the veterinary supply market and protect California veterinary practices and pet owners from its anticipated harms. [1]

California Attorney General Rob Bonta, along with the Federal Trade Commission (FTC) and a multistate coalition of 21 attorneys general, has filed a lawsuit to block Covetrus, Inc.'s proposed $3.5 billion acquisition of MWI Animal Health from Cencora, Inc. The coalition argues that the proposed acquisition violates Section 7 of the Clayton Act, which prohibits mergers that may substantially lessen competition or tend to create a monopoly (ID: 1). The merger also threatens the reliability of the veterinary supply chain. [1]

The joint investigation revealed that Covetrus and MWI are the nation’s two largest veterinary supply distributors and currently compete directly to provide veterinary practices with essential products, including pharmaceuticals, vaccines, and medical equipment. The proposed acquisition would significantly reduce competition and threaten to drive up costs for veterinary clinics and pet owners in California (ID: 1). [1]

Veterinary practices rely on multiple distributors to navigate product shortages, delivery delays, and inventory disruptions. Combining Covetrus and MWI would eliminate this important safeguard, increasing the risk of product shortages, reduced delivery frequency, and diminished service quality (ID: 1). [1]

The coalition seeks to block the transaction to preserve competition in the veterinary supply market and protect California veterinary practices and pet owners from its anticipated harms. In filing today’s lawsuit, Attorney General Bonta joins the FTC and the attorneys general of Arizona, Arkansas, Maine, Michigan, Minnesota, Nebraska, New York, North Carolina, Ohio, Oregon, and Texas (ID: 1). [1]

The lawsuit, filed by California Attorney General Rob Bonta, the Federal Trade Commission (FTC), and a coalition of 21 state attorneys general, argues that the proposed acquisition of MWI by Covetrus would significantly reduce competition in the veterinary supply market (ID: 1). The coalition claims that Covetrus and MWI are the two largest veterinary supply distributors in the United States and currently compete directly to provide veterinary practices with essential products such as pharmaceuticals, vaccines, and medical equipment. The joint investigation found that the merger would eliminate a key competitor, potentially allowing the combined entity to raise prices and impose less favorable contract terms on veterinary clinics. [1]

The merger would also pose a threat to the reliability of the veterinary supply chain. Veterinary practices currently rely on multiple distributors to navigate product shortages, delivery delays, and inventory disruptions (ID: 1). For example, when one supplier experiences a shortage of a critical vaccine or prescription medication, clinics can turn to another to maintain continuity of care. Combining Covetrus and MWI would eliminate this important safeguard, increasing the risk of product shortages, reduced delivery frequency, and diminished service quality. [1]

The coalition seeks to block the transaction to preserve competition in the veterinary supply market and protect California veterinary practices and pet owners from its anticipated harms (ID: 1). The lawsuit highlights that veterinary care costs have risen roughly 60% since 2014, with prices increasing another 5.7% from August 2025 to August 2026. The merger could exacerbate these rising costs by reducing the number of suppliers available to veterinary practices. [1]

Sources

California Attorney General Xavier Becerra - Press Releases

Prepared with AI assistance from the cited sources.