Antitrust Regulators Investigate Proposed Dairy Megamerger – eDairyNews
United States |28 enero, 2020

DFA | Antitrust Regulators Investigate Proposed Dairy Megamerger

Regulators are looking into a possible merger between Dean Foods and Dairy Farmers of America (DFA) and its potential antitrust implications for the industry, according to a report by The Wall Street Journal.

The U.S. Department of Justice has been meeting with retailers and farmers about how the deal would be received, and how it would affect competition in the industry.

“We are investigating Dairy Farmers of America’s potential acquisition of Dean Foods and the potential loss of competition for selling raw milk,” a Justice Department antitrust attorney said.

Dean, which is based in Texas, recently was forced to get protection from bankruptcy after years of struggling, mostly due to Americans drinking less milk. Consumption of milk has declined about 40 percent in the last four years, and production has shifted to smaller plants.

In November, the two entities announced they were looking into making a deal with each other.

Dean is the largest milk processor by sales, selling $4.8 million in 2018. DFA said about one-third of the milk in the U.S. is marketed by them. DFA has a number of milk-bottling plants as well as consumer dairy brands.

Overall dairy consumption in the country is rising because of people are eating more cheese and yogurt, but low milk prices continue to affect revenue, as companies are paid more for raw milk.

Large stores like Walmart and Kroger have also undercut big brands with their own varieties, and built their own bottling plants as well.

A couple of farm groups have expressed concern that the deal would concentrate milk buyers in different parts of the country.

Whether the deal is allowed to go through could affect dozens of Dean plants.

Monica Massey, DFA’s executive vice president, said the deal was subject to regulatory approval.

“When the largest processor of raw milk in the world files for bankruptcy, we have an obligation to do what we can to secure those markets and work to minimize disruption to our members and other farmers,” she said. “If a deal is reached, we will fully cooperate with DOJ officials, as we have done with past transactions.”

Topics |
Legal notice on Intellectual Property in digital content

All information contained in these pages that is NOT the property of eDairy News and is NOT considered "in the public domain" by legal regulations, are trademarks of their respective owners and recognized by our company as such. The publication on the eDairy News website is made for the purpose of gathering information, respecting the norms contained in the Berne Convention for the Protection of Literary and Artistic Works; in Law 11.723 and other applicable norms.

Any claim arising from the information contained on the eDairy News website will be submitted to the jurisdiction of the Ordinary Courts of the First Judicial District of the Province of Córdoba, Argentine Republic, with a seat in the City of Córdoba, to the exclusion of any another jurisdiction, including the Federal.

Deja una respuesta

Tu dirección de correo electrónico no será publicada. Los campos obligatorios están marcados con *

Related news