The Federal Trade Commission is taking a closer look at a proposed $3.5 billion merger that would combine Cencora's MWI Animal Health business with Covetrus, putting veterinary software and product availability under the antitrust microscope. The agency sent information demands in July to customers and rivals of both businesses, according to Reuters, which cited Bloomberg News. The requests seek details about the deal's effect on practice-management software and access to veterinary products. Neither the FTC nor the companies immediately commented to Reuters.
Why Vet Clinics Are In The FTC's Sights
Covetrus is not just a distributor: Its product lineup includes practice tools such as Pulse, AVImark, Impromed and other systems that help clinics handle records, prescriptions, payments and client communication, according to the company's software support page. The FTC's questions therefore reach into the operating systems behind a veterinary practice, not just the boxes of medicine arriving at its loading dock.
A $3.5 Billion Combination With A Big Veterinary Footprint
Cencora and Covetrus announced the deal February 18, saying the merger would unite MWI's companion- and production-animal distribution operations with Covetrus's technology and services. In the companies' transaction announcement, they said the combined platform could improve logistics, produce savings and expand access to animal-health products. The deal values MWI at $3.5 billion, with Cencora set to receive $1.25 billion in cash, $800 million in preferred equity and $1.45 billion in common equity while retaining a 34.3% non-controlling stake.
The Merger Has Not Reached The Finish Line
Cencora's second-quarter earnings materials filed with the SEC still classify MWI as held for sale and say the company's fiscal 2026 guidance does not assume the transaction closes before September 30. That timing caveat matters because the FTC's latest questions arrive months after the announcement and while the proposed sale remains subject to regulatory approval.
What A Closer FTC Review Could Lead To
The FTC's merger-review guidance says the agency can ask for more information when an initial review raises competition concerns, then close the investigation, negotiate a settlement or sue to block the deal. A request for more information is part of that review process, not a final finding that the merger is illegal.
For veterinary clinics, suppliers and pet owners, the practical question is whether the merger would mean smoother ordering and integrated software—or fewer choices and more leverage for one combined platform. The companies have pitched the first outcome; the FTC's information demands show regulators are testing the second before deciding what happens next.
