OK for acquisition PS by Smithfield
The United States Justice Department's antitrust
division has approved Smithfield Foods' acquisition of Premium Standard
"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.
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
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
The purchase of the number two pig grower, with about $1
billion in revenues, makes Smithfield even more dominant in pork
For more news on the Smithfield-PS Farms deal, click
â€¢ US Justice Department
â€¢ Smithfield Foods
â€¢ Premium Standard Farms
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