Zoetis Holdings LLC’s (Zoetis) proposed acquisition of Neogen Corporation’s global animal genomic testing business (Neogen Genomics) could substantially lessen competition and requires an in-depth Phase 2 assessment, the ACCC has decided.
Zoetis and Neogen Genomics both supply genomic testing services for beef cattle, dairy cattle and sheep in Australia.
“We consider the acquisition could substantially lessen competition in the supply of genomic testing services for cattle in Australia,” ACCC Commissioner Dr Philip Williams said.
“The acquisition would combine the two largest suppliers of genomic testing services for cattle in Australia. The information before the ACCC indicates that there are limited competitive alternatives, none of which would operate at a similar scale to the merged entity, and that barriers to entry and expansion are significant.”
The ACCC is also considering the competitive significance of Zoetis obtaining access to an increased volume and breadth of genetic data on cattle and sheep in Australia through the acquisition.
“We will conduct further in-depth inquiries and seek more information about the likely competitive effects of this proposed merger as part of the Phase 2 assessment,” Dr Willliams said.
The ACCC has not reached a conclusion on the issues and will continue to consider the acquisition in Phase 2.
