Washington sued to stop a $3.5B pet-care deal. The seller's stock went up anyway. 🐾
The FTC and 13 states filed suit Friday to block Covetrus from buying MWI Veterinary Supply from Cencora. They allege it would merge the two biggest US vet distributors, control over half the clinic market, and raise prices for clinics and pet owners.
Covetrus called the FTC's market view "narrow and outdated" and says it will defend the deal in court. A temporary order bars closing before Dec 4.
Market link: Cencora was set to receive $1.25B in cash plus a 34.3% stake in the combined company.
The move: $COR closed at $359.03 on Fri Nov 13, up 2.8%, on a day the Nasdaq fell 0.9%.
Is an antitrust lawsuit still a real threat to a deal like this, or does the market now expect these fights to drag on and settle?
The FTC and 13 states filed suit Friday to block Covetrus from buying MWI Veterinary Supply from Cencora. They allege it would merge the two biggest US vet distributors, control over half the clinic market, and raise prices for clinics and pet owners.
Covetrus called the FTC's market view "narrow and outdated" and says it will defend the deal in court. A temporary order bars closing before Dec 4.
Market link: Cencora was set to receive $1.25B in cash plus a 34.3% stake in the combined company.
The move: $COR closed at $359.03 on Fri Nov 13, up 2.8%, on a day the Nasdaq fell 0.9%.
Is an antitrust lawsuit still a real threat to a deal like this, or does the market now expect these fights to drag on and settle?
