US regulator moves to block Covetrus deal for Cencora unit

Anabelle Colaco
15 Nov 2026, 12:32 GMT+10

Cencora’s $3.5 billion deal to sell its MWI Animal Health unit to veterinary supplier Covetrus faces a court fight after the US Federal Trade Commission sued to block it on November 13
The antitrust regulator said the proposed transaction would combine the two largest distributors of veterinary medicines and clinic supplies in the US, effectively wiping out head-to-head competition
The lawsuit was filed in the US District Court for the Southern District of New York and is joined by attorneys general from 13 states

Esmaeil Baqaei NEW YORK CITY, New York: Cencora's $3.5 billion deal to sell its MWI Animal Health unit to veterinary supplier Covetrus faces a court fight after the US Federal Trade Commission sued to block it on November 13, arguing the tie-up would raise costs for clinics and pet owners.

The antitrust regulator said the proposed transaction would combine the two largest distributors of veterinary medicines and clinic supplies in the US, effectively wiping out head-to-head competition.

The lawsuit was filed in the US District Court for the Southern District of New York and is joined by attorneys general from 13 states.

Cencora agreed in February to sell MWI to privately held Covetrus.

Covetrus responded that the FTC's case relies on a narrow and outdated view of the market. The company said in a statement that the FTC's lawsuit "does not reflect an accurate understanding of how veterinarians actually buy the products they need," adding that it is fully prepared to defend the deal in court.

Cencora did not immediately respond to a request for comment.

J.P. Morgan analysts said they do not expect the FTC challenge to hurt Cencora's forecast. The brokerage expects Cencora to push for the deal on its strategic merits, but said the company would likely "look for alternative MWI transactions" if the sale is ultimately blocked.