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 ԭ 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,” ԭ 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 ԭ 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 ԭ 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 ԭ has not reached a conclusion on the issues and will continue to consider the acquisition in Phase 2.
The ԭ invites submissions in response to its Phase 2 Notice by 31 July 2026. Parties can contact the ԭ via mergers@accc.gov.au.
More information and the Phase 2 Notice are available on the ԭ’s Acquisition Register: Zoetis – Neogen Genomics Business.
Note to editors
Zoetis notified the acquisition to the ԭ on 12 May 2026. The ԭ’s Phase 1 determination period was extended by 20 business days on 15 June 2026 following a request by the parties.
Background
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.
Animal genomic testing involves the analysis of an animal’s DNA samples to identify genetic traits that can inform farmers’ breeding and sales decisions. Testing generally focuses on economically important traits, such as milk production, meat quality, feed efficiency, disease resistance, fertility, growth rates, genetic defects and overall health. Genomic testing helps farmers to quickly and accurately identify higher-value animals and improve herd genetics through selective breeding.
Merger control regime
The ԭ can decide a notification is to be subject to a Phase 2 review if the ԭ 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 ԭ’s website: Guidance documents for the merger control regime.