Federal regulators are taking a closer look at a planned $3.5 billion merger that would join two of the largest national suppliers of veterinary products, combining Cencora’s MWI Animal Health business with privately held Covetrus. According to people familiar with the matter, the U.S. Federal Trade Commission has issued information requests in recent weeks to customers and competitors of both Covetrus Inc and MWI Animal Health as part of its review.
The requests seek information on how the proposed transaction could influence the availability of veterinary products and the market for practice-management software. The software in question is widely used by veterinary clinics to manage patient records, prescriptions and payments, and the agency’s inquiries aim to clarify potential impacts on these operational tools.
Cencora announced in February that it would sell MWI Animal Health to Covetrus, a move the company framed as part of a broader effort to sharpen its focus on drug distribution and to divest businesses it considers non-core. The contemplated sale would bring together two well-established distributors and related service offerings within the animal-health supply chain.
Cencora, Covetrus and the Federal Trade Commission did not immediately respond to requests for comment. The agency’s outreach to customers and competitors is a common step in merger reviews when regulators seek marketplace perspectives on how a proposed deal might alter competitive dynamics or affect access to critical products and services.
For market participants and veterinary practices, the FTC’s information requests signal a heightened level of scrutiny that could determine whether the transaction proceeds as currently structured or faces conditions, remedies, or potential challenges. The focus on both physical product distribution and practice-management software highlights the multiple dimensions of competition the agency is examining.
At this stage, the information demands indicate the regulator is gathering evidence rather than announcing a specific finding. How quickly the review will move forward or what outcomes could result remains unclear based on the information provided so far.