Exclusive / FTC to block $3.5B veterinary merger - Semafor
The FTC is flexing its regulatory muscle again.
The antitrust regulator is planning to file suit to block a $3.5 billion veterinary deal later today, according to people familiar with the matter, seeking to prevent a private equity-owned company from acquiring a smaller rival.
The regulator plans to cite increased costs for pet owners and veterinary clinics as part of the suit to block CD&R and TPG-owned Covetrus from acquiring MWI Veterinary Supply, the people said. Covetrus and MWI are both national suppliers of medical supplies and products. The Commission believes that the combination would result in a highly concentrated market, the people said.
Neither Covetrus nor MWI returned a request for comment.
Under Andrew Ferguson, the FTC, unlike the Justice Department, has managed to focus on its regulatory mission β even if it has allowed many mergers to pass uncontested.
It has used its enforcement tools to execute President Donald Trumpβs agenda, which has recently centered on affordability. It is that focus, Washington insiders say, that has now given Ferguson a degree of latitude to pursue cases and merger enforcement that he desires.
The FTC is also planning to block a $5 billion merger of two uniform and office equipment suppliers, Semafor reported. The FTC plans to set a last-rites meeting β a precursor to that formal suit β in the coming days, other people familiar with the matter said.
