FTC sues to stop Covetrus from buying MWI Veterinary Supply for $3.5 billion

The agency says the deal would combine the country's two largest suppliers serving veterinary clinics and large corporate accounts. It describes the current competition between them as an "all-out price war" and argues a merger would end it. The FTC says that would push clinic costs up and service quality down.

Both companies run national networks that deliver pharmaceuticals, vaccines, surgical supplies and thousands of other products to practices. The FTC says new and smaller suppliers face structural barriers to entering this market. It also says the combined company would leave the market concentrated enough to be presumed unlawful under current antitrust guidelines.