FTC and 13 States Sue to Block $3.5 Billion Covetrus Merger

The Federal Trade Commission and attorneys general from 13 states, including New York, filed a lawsuit on November 13, 2026, to block the $3.5 billion acquisition of MWI Veterinary Supply by Covetrus. The lawsuit, filed in the US District Court for the Southern District of New York, seeks to stop Covetrus's owners, Clayton, Dubilier & Rice LLC and TPG Inc., from purchasing the unit from its parent company, Cencora.

Regulators argue that merging the two largest distributors of veterinary medicines and clinic supplies in the United States would eliminate head-to-head competition. The coalition alleges the deal violates the FTC Act and the Clayton Act, claiming the merger would allow Covetrus to increase prices for clinics and pet owners while weakening customer service. Specifically, the lawsuit notes that corporate practice groups would lose the ability to negotiate discounts between rival suppliers.

Cencora originally agreed to the sale in February. While J.P. Morgan analysts suggest the legal challenge may not impact Cencora's financial forecast, they anticipate the company may seek alternative transactions if the court blocks the sale. The parties have agreed to a temporary restraining order preventing the deal from closing before December 4, 2026, while the coalition pursues a permanent injunction.