Sheep DNA testing at Neogen.

AUSTRALIA’S competition regulator believes Zoetis Holdings LLC’s proposed acquisition of Neogen Corporation’s global animal genomic testing business is unlikely to substantially lessen competition among sheep genomic testing services.

However, Australian Competition and Consumer Commission commissioner Dr Philip Williams last week said the ACCC considered the acquisition could substantially lessen competition in the supply of genomic testing services for cattle in Australia.

Zoetis and Neogen Genomics both supply genomic testing services for beef cattle, dairy cattle and sheep in Australia.

Dr 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 said it has not reached a conclusion on the issues and will continue to consider the acquisition in the Phase 2 investigation. Read the ACCC’s full decision here.

The regulator said Zoetis has a small presence in relation to the supply of genomic services for sheep and there are multiple alternative suppliers who would be likely to constrain the merged entity.

“This Phase 2 Notice does not consider the supply of genomic testing services for sheep in Australia further, other than in relation to considering the competitive effects of the merged entity’s increased access to, and use of, genomic data on sheep, as discussed in paragraph 3.16 below.

Paragraph 3.16 reads: “The ACCC is considering the competitive significance of the merged entity obtaining access to an increased volume and breadth of genetic data through the acquisition, including whether this would, for example, raise barriers to entry and expansion or impede new or existing rivals’ ability to compete effectively.”

The ACCC has invited submissions in response to its Phase 2 Notice by 31 July 2026. Parties can contact the ACCC via [email protected].

More information and the Phase 2 Notice are available on the ACCC’s Acquisition Register: Zoetis – Neogen Genomics Business.

Zoetis notified the proposed acquisition to the ACCC on 12 May 2026. The ACCC’s Phase 1 determination period was extended by 20 business days on 15 June 2026 following a request by the parties.

Zoetis is a US-listed global animal health company. Zoetis supplies genomic testing for beef and dairy cattle and sheep in Australia. Zoetis conducts all of its genomic testing for Australian customers in its laboratory based in Michigan, United States.

Neogen Corporation is a US-listed global biotechnology company. Neogen Genomics, a division of Neogen Corporation, supplies genomic testing services for beef and dairy cattle and sheep in Australia. It has laboratories globally, including in Brisbane. Neogen Genomics acquired its Brisbane laboratory from the University of Queensland Genetics Laboratory in 2017.

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.

More guidance on the new merger regime can be found on the ACCC’s website: Guidance documents for the merger control regime.