US meat giant Tyson Foods has agreed to sell a hog business to win approval from antitrust regulators for its proposed buyout of Hillshire Brands, the Justice Department said Wednesday.
Tyson, the leading US poultry seller, agreed in early July to buy sausage maker Hillshire for $8.55 billion, including Hillshire's debt.
For the deal to proceed, Tyson will divest Heinold Hog Markets, its sow purchasing business, the Justice Department said.
Without the business sale, Tyson and Hillshire would have accounted for more than a third of sow purchases from US farmers.
"Farmers are entitled to competitive markets for their products. Today's proposed settlement will help ensure that hog breeders in the United States will continue to receive the benefits of vigorous competition when selling sows," said Bill Baer, assistant attorney general in charge of the antitrust division, in a statement.
Under the settlement, which must be approved by a federal court, Tyson must sell all of Heinold Hog Markets to a buyer approved by the antitrust division.
The merger deal adds Hillshire's popular downstream processed meats -- higher value-added brands like Jimmy Dean sausages and Ball Park hot dogs -- to the more commodity-like fresh and frozen meats of the world's second-largest meat processor.
Tyson says bringing the two businesses together would deliver $300 million in annual savings to the combined company.
Investors welcomed the news, pushing Tyson shares up 1.9 percent to $37.86 in late-afternoon trade, while Hillshire edged up 0.1 percent to $62.98.
GMT 17:56 2018 Wednesday ,17 January
Ericsson to write down 1.4 billion euros in fourth quarterGMT 19:16 2018 Saturday ,13 January
China shuts Marriott website over Tibet error, scolds other firmsGMT 17:31 2018 Thursday ,11 January
UK group bids for Europe's biggest aluminium smelterGMT 17:24 2018 Thursday ,11 January
UK supermarket Sainsbury's lifts outlook after bumper ChristmasGMT 17:52 2018 Tuesday ,09 January
H&M removes 'black boy' ad after racism accusationGMT 19:38 2018 Wednesday ,03 January
Petrobras pay $2.95bn to settle US class action on corruptionGMT 13:49 2018 Wednesday ,03 January
China’s Ant Financial drops $1.2 billion MoneyGram deal as US approval failsGMT 17:47 2017 Sunday ,31 December
BA owner to buy bankrupt Austrian airline NikiMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor