AP: JBS, National Beef call off deal
Two of the largest beef processors in the U.S. call off their proposed merger. Family ranchers and supporters proclaim victory.
In late February the proposed merger between JBS and National Beef was called off, perhaps due to grassroots pressure from farm and ranching communities and the threat of an anti-trust lawsuit filed by the U.S. Department of Justice back in October 2008.
Reporting for the Associated Press, Emily Fredrix writes that the "lawsuit alleged that grocers, food
service companies and ultimately, consumers would likely pay more for
beef if the buyout went through because it would have put more than 80
percent of domestic-fed cattle-packing capacity in the hands of three
companies — JBS, Tyson Foods Inc. and Cargill Inc."
The dropping of the sale of National Beef to JBS was taken as a measure of success by many family farm and ranches and their supporters who opposed the merger. Bill Bullard, chief executive for the cattle producer's group R-CALF said, "JBS and National Beef are among the most powerful and influential food manufacturing corporations in the world and their attempt to lock up our cattle market has now been defeated by U.S.family farmers and ranchers."
Read the full article in the Denver Post>>
Related articles
