US FTC sues to block Cencora’s $3.5 billion sale of veterinary unit to Covetrus

Nov 13 (Reuters) – The US antitrust regulator filed a lawsuit on Friday in a New York federal court to ​block Cencora’s $3.5 billion sale of its ‌MWI Animal Health unit to veterinary supplier Covetrus, arguing the deal would raise costs for clinics and pet owners. • The Federal Trade Commission 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 • Cencora agreed in February to sell MWI to ​privately held Covetrus • 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 • The FTC said ​Covetrus and MWI currently engage in ‌aggressive price competition, offering discounts and rebates to win business from independent veterinarians and large clinic chains • Cencora and Covetrus did not ⁠immediately respond to Reuters requests 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 • Cencora’s shares were up about 2% in midday trading (Reporting by Kamal Choudhury in Bengaluru; Editing by ​Sahal Muhammed)