FTC Sues to Block Proposed $3.5 Billion Covetrus-MWI Merger

By Katherine Hamilton

Covetrus has been sued by the Federal Trade Commission to block the company from acquiring rival MWI Veterinary Supply.

Covetrus, which provides supplies to veterinarians, agreed in February to acquire Cencora's MWI animal-health business in a deal worth $3.5 billion.

The FTC is alleging the transaction would merge two of the biggest suppliers in the vet-clinic distribution industry, potentially driving up costs and hurting competition.

Covetrus responded to the suit Friday saying the merger would improve the economics of veterinary practices. By combining, Covetrus and MWI would make it easier and more efficient for vets to access products, the company said.

In its suit, the FTC said the emergence of Vetcove, an online platform allowing vets to compare prices across distributors, has fueled more pricing competition among suppliers. The market concentration that would allegedly occur from a merger renders the deal unlawful under antitrust law, the FTC said.

The FTC vote to authorize staff to seek a permanent injunction to block the proposed deal was 2-0.

Covetrus said it was confident in the merits of the proposed deal and that it was prepared to defend them in court.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

November 13, 2026 13:23 ET (18:23 GMT)