FTC Takes a Closer Look at Proposed Cencora-Covetrus Merger
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The proposed $3.5 billion combination of Cencora's MWI Animal Health and Covetrus is facing increased scrutiny from federal regulators, a move that could have significant implications for veterinary product distribution and practice management software. According to Bloomberg News, the U.S. Federal Trade Commission (FTC) has begun requesting information from veterinary customers and industry competitors as it reviews the proposed acquisition. The agency is evaluating whether combining two of the country's largest veterinary suppliers could reduce competition in key areas of the animal health industry. The reported information requests focus on more than pharmaceuticals and medical supplies. Bloomberg reports that regulators are also examining how the deal could affect veterinary practice management software, including platforms used for electronic medical records, inventory management, prescriptions, billing, and payments. Neither Cencora, Covetrus, nor the FTC immediately commented on Bloomberg's report. The proposed transaction, valued at approximately $3.5 billion, would unite two companies that play major roles in the day-to-day operations of veterinary practices across the United States. Earlier this year, Cencora announced plans to divest MWI Animal Health as part of a broader strategy to focus on its core pharmaceutical distribution business. Covetrus, already a...
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