The Australian Competition and Consumer Commission (ACCC) has listed its concerns over global healthcare giant Zoetis’ proposed acquisition of Hunter-based Jurox.
In Australia, the companies are two of the largest suppliers of various prescription and over-the-counter products for production animals and companion animals.
In a statement of issues, the ACCC said that the proposed acquisition would remove one of Zoetis’ closest competitors in the supply of intramammary antibiotics for lactating cows, intramammary antibiotics for dry cows, and teat sealants for cows in Australia.
In the event of acquisition, the ACCC is concerned Zoetis would have no close competitors and in turn will likely lead to higher prices in each market.
Another area of concern for the ACCC is that by acquiring Jurox, Zoetis will control two of the three sheep parasiticides that are most effective at managing parasiticide resistance, again likely leading to higher prices in this market.
The ACCC is currently seeking submissions based on the statement of issues raised. Submissions must be submitted by 11 March 2022, with a final decision likely on 28 April 2022.