Justice Dept. challenges poultry deal

Tuesday, May 10, 2011 4:01 PM By dwi

HARRISONBURG, Va., May 10 (UPI) -- U.S. Justice officials said they went to suite weekday to block George's Inc.'s acquire of gladiator Food's cowardly processing complex in Harrisonburg, Va.

In a subject just causa filed in U.S. District Court in Harrisonburg, the federal polity contends the understanding essentially wipes discover rivalry between the two poultry companies for the procurement of chickens in the Shenandoah Valley area.

The Justice Department is requesting the suite declare the acquisition unlawful under federal just laws and order divestiture of the Harrisonburg complex or other appropriate relief.

"The department's causa alleges that George's acquisition of Tyson's Harrisonburg chicken-processing artefact would reduce growers' knowledge to receive competitive prices for their services," Christine Varney, supporter attorney general in charge of the Department of Justice's Antitrust Division, said in a release. "America's farmers merit competitive prices and cost for the understanding of their services, and the just division module vigorously oppose anti-competitive acquisitions that defence in the artefact of achieving that goal."

Before the Tyson-George's care announced March 18, those companies and JBS/Pilgrim's Pride competed for the services of topical cowardly growers. The acquisition leaves the location with exclusive two buyers for topical farmers.

George's, the nation's 15th-largest cowardly processor, and Tyson, the largest, both have headquarters in Springdale, Ark., while JBS/Pilgrim's Pride, the second-largest processor, has its headquarters in Greeley, Colo.


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