AUSTRALIA | The ACCC has decided that Zoetis' proposed acquisition of Neogen Genomics could substantially lessen competition and requires an in-depth Phase 2 assessment.
Zoetis and Neogen Genomics both provide genomic testing services for beef, dairy, and sheep in Australia.
“We consider the acquisition could substantially lessen competition in the supply of genomic testing services for cattle in Australia,” said ACCC Commissioner Dr Philip Williams.
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 indicated that there were 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 has also considered 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,” said Dr Willliams said.
Zoetis notified the acquisition to the ACCC of the acquisition on the 12th of May 2026. The ACCC has not reached a conclusion on the issues and will continue to consider the acquisition in Phase 2, inviting submissions in response to its Phase 2 Notice by the 31st of July 2026.
The ACCC can decide a notification is to be subject to a Phase 2 review if the ACCC is satisfied that the acquisition to which the notification relates, if put into effect, could, in all of the circumstances, have the effect, or be likely to have the effect, of substantially lessening competition in any market.
Under the Competition and Consumer Act, a Phase 2 assessment can take up to 90 business days, unless extended under specific circumstances.
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