California Sues to Block $3.5B Veterinary Supply Merger

OAKLAND, Calif. — California Attorney General Rob Bonta joined the Federal Trade Commission and a multistate coalition of attorneys general on November 12, 2026, in filing a lawsuit to block Covetrus, Inc.'s proposed $3.5 billion acquisition of MWI Animal Health, prosecutors announced.

Read the California Attorney General release: https://oag.ca.gov/news/press-releases/attorney-general-bonta-keep-corporate-consolidation-short-leash-challenges-35

The lawsuit was filed in the U.S. District Court for the Southern District of New York, according to the release.

Covetrus and MWI Animal Health are the nation's two largest veterinary supply distributors, the Attorney General's Office stated.

MWI is being sold by Cencora, Inc., according to the release.

Two Largest Distributors, Direct Competition, and a Clayton Act Claim

Covetrus and MWI compete directly to provide veterinary practices with essential products, including pharmaceuticals, vaccines, and medical equipment, according to the release.

In the United States, the vast majority of those products are distributed through just three national suppliers: Covetrus, MWI, and Patterson Veterinary, officials reported.

On March 18, 2026, Covetrus entered into an agreement to acquire MWI from Cencora for approximately $3.5 billion, according to the release.

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, officials reported.

A joint investigation by the FTC and the states 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, according to the release.

Rising Vet Costs, Price Power, and Supply Reliability

Veterinary care costs have risen roughly 60% since 2014, with prices increasing another 5.7% from August 2025 to August 2026, according to the release.

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, officials reported.

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, according to the release.

The merger also threatens the reliability of the veterinary supply chain, officials reported.

Veterinary practices currently rely on multiple distributors to navigate product shortages, delivery delays, and inventory disruptions, and when one supplier experiences a shortage of a critical vaccine or prescription medication, clinics can turn to the other to maintain continuity of care, according to the release.

"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," Bonta said.

"The proposed acquisition threatens to squeeze veterinary clinics and leave pet owners footing the bill," Bonta said.

A 21-State Coalition, a Request to Block, and a Federal Court Decision

In filing the lawsuit, Attorney General Bonta joins the FTC and the attorneys general of Arizona, Colorado, the District of Columbia, Florida, Idaho, Illinois, Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nebraska, North Carolina, Ohio, Oregon, Texas, Virginia, West Virginia, and Washington, according to the release.

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, officials reported.

What happens next is a decision by the federal court in the Southern District of New York on the coalition's request to block the acquisition, according to the release.

Anyone with information about anticompetitive conduct can contact the California Attorney General's Office, and official updates on this case are published by the Attorney General's Office.

Sources

California Attorney General, Official Press Release, November 12, 2026: https://oag.ca.gov/news/press-releases/attorney-general-bonta-keep-corporate-consolidation-short-leash-challenges-35