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FTC Scrutinizes Proposed $3.5 Billion Veterinary Products Merger

By  |  August 4, 2026
FTC Scrutinizes Proposed $3.5 Billion Veterinary Products Merger

US antitrust regulators are conducting a closer review of a proposed $3.5 billion merger between veterinary products distributors Covetrus Inc. and MWI Animal Health, a Cencora Inc. subsidiary, according to Bloomberg, citing people familiar with the matter.

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    Bloomberg reported that the Federal Trade Commission recently sent information requests to customers and competitors of the companies as part of its examination of the transaction. According to Bloomberg’s sources, the agency is seeking information about how the proposed combination could affect competition in the distribution of veterinary products and in the market for veterinary practice-management software, which clinics use to manage patient records, prescriptions and billing.

    Covetrus, which is owned by Clayton Dubilier & Rice LLC and TPG Capital LP, announced in February that it had agreed to acquire MWI Animal Health from Cencora. Bloomberg reported that Cencora would retain a minority, non-controlling interest in the combined business after the transaction closes.

    According to Bloomberg, the merger would unite the two largest national distributors of veterinary products in the United States. Bloomberg also reported that Covetrus operates the country’s most widely used veterinary practice-management software platform, with an estimated 25% share of that market based on a 2026 survey of North American veterinary practices.

    Bloomberg said the national veterinary distribution market is led by Covetrus, MWI Animal Health and Patterson Cos., which was acquired last year by Paradigm Parent LLC. Regional distributor Midwest Veterinary Supply Inc. is also a significant participant in the industry, according to the report.

    Read more: UK Antitrust Watchdog Orders Veterinary Market Reforms to Boost Price Transparency

    The FTC and Covetrus declined to comment, Bloomberg reported. MWI Animal Health did not immediately provide a comment.

    Bloomberg also cited a person familiar with the transaction who argued that the merger is unlikely to result in higher prices because veterinary practices have alternative purchasing options, including other distributors and direct sales from manufacturers such as Boehringer Ingelheim Corp. and Idexx Laboratories Inc. The source also said pet owners could shift purchases to retailers including Petco Health and Wellness Co. and Chewy Inc. if veterinary clinics raised prices.

    The review comes as veterinary care costs have climbed sharply in recent years. Bloomberg, citing an analysis by the nonprofit CATalyst Council, reported that the price of veterinary services has risen at roughly twice the overall rate of inflation. Bloomberg also cited a recent Gallup poll showing that more than half of Americans had postponed recommended care for their pets, with most of those respondents identifying cost as the primary reason.

    Corporate ownership has become increasingly common in the veterinary industry. According to Bloomberg, citing Brakke Consulting, about one-quarter of U.S. veterinary practices are owned by corporations or private equity firms. Bloomberg reported that Mars Inc. is the largest such operator through its ownership of VCA Animal Hospitals and Banfield Pet Hospital, whose clinics are located inside PetSmart stores.

    Source: Bloomberg