News 460 views last update:May 8, 2007

OK for acquisition PS by Smithfield

The United States Justice Department's antitrust division has approved Smithfield Foods' acquisition of Premium Standard Farms.

"The division found that the merged firm would continue to face significant competition in the sale of fresh and processed pork from its national competitors," the department said in a news release.

"Additionally, farmers who sell hogs or hog-raising services to the merged firm would have competitive alternatives that would deter the merged firm from lowering prices paid to the farmers."

Under terms of the agreement, announced last September, Smithfield will buy Premium Standard for approximately $674 million.

It took quite long for the Justice Department to approve the acquisition. Additional information about the acquisition had to be presented in November; and in the beginning of April, DOJ said it needed 30 more days.

The purchase of the number two pig grower, with about $1 billion in revenues, makes Smithfield even more dominant in pork industry.

For more news on the Smithfield-PS Farms deal, click here

Related websites:
• US Justice Department 
• Smithfield Foods 
• Premium Standard Farms 

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