Australia's competition and consumer watchdog is seeking comment on a proposed court-enforceable undertaking offered by animal health product manufacturer Zoetis in relation to its proposed acquisition of Jurox.
Zoetis and Jurox both develop, manufacture, and sell products that detect, prevent, and treat health issues in companion and production animals.
Both companies supply intramammary antibiotics for dry and lactating cows, teat sealants for cows and parasiticides for sheep.
In a statement of issues, the Australian Competition and Consumer Commission raised concerns the proposed acquisition would remove one of Zoetis' closest competitors for these products in markets that are already highly concentrated.
Following consultation, the ACCC decided that the proposed acquisition was unlikely to substantially lessen competition in the supply of sheep parasiticides or various companion animal products to veterinarians, including opioid and non-opioid sedatives, antidotes for sedatives, corticosteroids and penicillin.
The ACCC also concluded that the acquisition was unlikely to provide Zoetis with the ability and incentive to engage in anti-competitive bundling with Jurox's Alfaxan product.
To address the ACCC's remaining concerns, Zoetis has offered a court-enforceable undertaking to divest rights to Jurox's intramammary antibiotic for dry and lactating cows and teat sealant products for cows to a purchaser approved by the ACCC.
These products include Jurox's Ampiclox LC and DC, Juraclox LA, Maxalac LC and DC and U-Seal products.
"In assessing Zoetis' proposed undertaking, the ACCC will need to be satisfied that the undertaking would effectively address our competition concerns in relation to intramammary antibiotics and teat sealants for cows," ACCC deputy chair Mick Keogh said.
"The proposed undertaking would also need to ensure that the ACCC-approved purchaser has the opportunity to meaningfully compete in the supply of intramammary antibiotics and teat sealants for cows."
The ACCC invites submissions on the proposed undertaking by August 25, 2022.
"Consistent with our usual practice of publicly consulting when divestitures are proposed, this public consultation should not be viewed as a signal that the ACCC will ultimately accept the proposed divestiture undertakings and not oppose the transaction," Mr Keogh said.
More information, including the undertaking proposed by Zoetis, is available on the ACCC's public register.
