New York Attorney General Letitia James joined the Federal Trade Commission and 12 other states on Nov. 13 in a lawsuit seeking to block Covetrus from acquiring rival MWI Veterinary Supply, arguing the deal could increase veterinary costs for pet owners.
According to the attorney general’s office, the acquisition would give Covetrus control of more than half of the relevant veterinary distribution markets. The coalition alleges that reduced competition would allow the company to charge clinics higher prices and weaken customer service, with consequences for pet owners in New York and across the country.
“A trip to the vet should never break the bank,” James said in the release. “Pet owners are already paying enormous prices for care, and this merger would threaten to drive costs even higher.”
States say clinics would lose a major competitor
Covetrus and MWI are two of the country’s three largest veterinary clinic distributors, according to the attorney general’s office. They supply equipment, medications and other products to independent practices and large corporate veterinary groups.
The office said the companies compete through pricing, rebates and incentives. Corporate practice groups can use competing offers to negotiate discounts, which the coalition says can translate into more affordable care for pet owners.
The lawsuit raises concerns about competition both for veterinary clinics generally and for large corporate practice groups specifically. Those groups may operate hundreds of clinics across multiple states and prefer a distributor capable of serving all their locations.
According to the release, corporate groups can buy 65% to 90% of their supplies from a single distributor. The coalition argues that relatively few suppliers have the scale to serve those accounts and that removing MWI as an independent competitor would give Covetrus greater power to demand higher prices.
The states and FTC also contend that the companies’ rivalry encourages investment in experienced sales representatives, in-clinic assistance and customer support. They allege the acquisition would substantially reduce Covetrus’ incentive to maintain those services.
Temporary restraint runs through early December
The companies have agreed to a temporary restraining order preventing them from completing the acquisition before Dec. 4, 2026, the attorney general’s office said.
The coalition is seeking a preliminary injunction to keep the transaction from closing while the challenge proceeds, followed by a ruling declaring the merger illegal and permanently blocking it. It alleges the transaction would violate the FTC Act and the Clayton Act. Those allegations are not a final court determination.
Joining New York and the FTC are the attorneys general of Arizona, Arkansas, California, Colorado, Maine, Michigan, Minnesota, Nebraska, North Carolina, Ohio, Oregon and Texas.
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