Attorney General Bonta to Keep Corporate Consolidation on a Short Leash, Challenges $3.5 Billion Veterinary Supply Merger

OAKLAND — California Attorney General Rob Bonta today joined the Federal Trade Commission (FTC) and a multistate coalition of 21 attorneys general in filing a lawsuit to block Covetrus, Inc.’s (Covetrus) proposed $3.5 billion acquisition of MWI Animal Health (MWI) from Cencora, Inc. Covetrus and MWI are the nation’s two largest veterinary supply distributors and currently compete directly to provide veterinary practices with essential products, including pharmaceuticals, vaccines, and medical equipment. A joint investigation revealed that the proposed acquisition would significantly reduce competition and threaten to drive up costs for veterinary clinics and pet owners in California. In the lawsuit, filed in the U.S. District Court for the Southern District of New York, the coalition argues that the proposed acquisition violates Section 7 of the Clayton Act, which prohibits mergers that may substantially lessen competition or tend to create a monopoly.

“California families are already facing rising costs, and the last thing they need is a corporate merger that threatens to make essential veterinary care even more expensive,” said Attorney General Bonta. “Our pets are part of our families, and the companies supplying their care should not be able to put profits ahead of their health and well-being. The proposed acquisition threatens to squeeze veterinary clinics and leave pet owners footing the bill. As the People’s Attorney, I’m proud to stand up for all members of California’s families — including those with four legs.”

Veterinary practices rely on a specialized supply chain to obtain the medicines, vaccines, and equipment necessary to care for animals. In the United States, the vast majority of these products are distributed through just three national suppliers: Covetrus, MWI, and Patterson Veterinary. On March 18, 2026, Covetrus entered into an agreement to acquire MWI from Cencora for approximately $3.5 billion. The proposed acquisition comes as veterinary care costs have risen roughly 60% since 2014, with prices increasing another 5.7% from August 2025 to August 2026.

The joint FTC and multistate investigation found substantial evidence that Covetrus and MWI are direct head-to-head competitors, competing for veterinary customers through daily price matching, volume-based drug rebates, and service contract negotiations. By eliminating one of the primary alternative suppliers available to California veterinary practices, the acquisition would give the combined company significant power to raise prices and impose unfavorable contract terms. Smaller regional distributors and specialty suppliers lack the scale and infrastructure to meaningfully constrain the combined company’s market power or meet the full range of supplies needed by most clinics.

The merger also threatens the reliability of the veterinary supply chain. Veterinary practices currently rely on multiple distributors to navigate product shortages, delivery delays, and inventory disruptions. For example, when one supplier experiences a shortage of a critical vaccine or prescription medication, clinics can turn to the other to maintain continuity of care. Combining Covetrus and MWI would eliminate this important safeguard, increasing the risk of product shortages, reduced delivery frequency, and diminished service quality. The coalition seeks to block the transaction to preserve competition in the veterinary supply market and protect California veterinary practices and pet owners from its anticipated harms.

In filing today’s lawsuit, Attorney General Bonta joins the FTC and the attorneys general of Arizona, Arkansas, Maine, Michigan, Minnesota, Nebraska, New York, North Carolina, Ohio, Oregon, and Texas. 

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