Tuesday, October 21, 2008

Suit Against Packer Acquisition Draws Praise for Justice Department The action of the U.S. Department of Justice to file an antitrust lawsuit against Brazil-based JBS acquiring the National Beef Packing Company is drawing positive responses from many different sectors. On Monday, DOJ filed a civil antitrust suit in the U.S. District Court for the Northern District of Illinois. According to DOJ, if not blocked, JBS's acquisition of Kansas City, Mo.-based National would make it the largest U.S. beef packer, with an ability to slaughter more than 40,000 head of cattle per day, or more than one third of U.S. fed cattle packing capacity. "The combination of JBS and National will likely lead to grocers, food service companies and ultimately American consumers paying higher prices for beef," said Thomas O. Barnett, Assistant Attorney General in charge of the Department's Antitrust Division. "It will also lessen the competition among packers in the purchase of cattle that has been critical to ensuring competitive prices to the nation's thousands of producers, ranchers and feedlots."....

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