FTC Wants More Merger Detail From Bergen Brunswig

In a move that could spell trouble for a major merger, the Federal Trade Commission asked for more information about the sale of drug wholesaler Bergen Brunswig Corp. to competitor Cardinal Health Inc.

Both companies said Friday that they will comply with the request, which gives the agency 20 more days to review the anti-competitive aspects of the $3.1-billion merger.

Antitrust lawyers pointed out that the announcement earlier this week of a second mega-merger in the drug wholesaling industry--McKesson Corp.’s plans to buy AmeriSource Health Corp.--could make it harder for Bergen and Cardinal to gain approval.

“The trend toward consolidation is something that the antitrust people do look at,” Washington antitrust lawyer Lewis Noonberg said.

The companies are the four largest in their industry. If the two acquisitions are permitted, experts said, the resulting giants would control about two-thirds of the market.

That raises FTC concerns over a potential monopoly or barriers to entry for competitors--conditions that could lead to higher wholesale prices to pharmacies and ultimately higher prices for consumers, officials said.

In recent years, the drug wholesaling industry, including Bergen Brunswig, has been the target of numerous federal and state lawsuits alleging that the companies have engaged in price-fixing.

Bergen and Cardinal said they still expect to complete the merger by the end of this year or early next year. The newly combined company would be called Cardinal Bergen Health Inc. and have headquarters in Dublin, Ohio, where Cardinal is based.

In New York Stock Exchange trading Friday, the price of Bergen Brunswig stock rose 41 cents a share to close at $41.50 a share. Cardinal stock rose 75 cents to close at $69.47 a share. McKesson was up $1.44, ending the day at $100.38, and AmeriSource slipped 44 cents to close at $59.50.