FTC Sues Covetrus to Block $3.5 Billion Acquisition of Competitor

The Federal Trade Commission filed a lawsuit against Covetrus, a Maine-based veterinary supplies company, seeking to block a proposed acquisition of its closest competitor, MWI Veterinary Supply, valued at $3.5 billion. The FTC alleges that the combined company would increase prices for pet owners, decrease service quality, and raise costs for veterinarians. Multiple states, including Maine, have joined the lawsuit.

The suit centers on whether the proposed merger would eliminate fierce head-to-head competition in the veterinary supplies market. The FTC argues that Covetrus intends to eliminate competition rather than compete for customers. Covetrus countered that the merger would improve the economics of veterinary practices.