US: DOJ wants divestitures in Symrise’s acquisition of IDF and ADF

The Department of Justice(DOJ) announced Wednesday, October 30, that it will require Symrise AG to divest its chicken-based food ingredient manufacturing facility in Banks County, Georgia, in order to proceed with its proposed US$900 million acquisition of International Dehydrated Foods (IDF) and American Dehydrated Foods (ADF) from IDF Holdco and ADF Holdco.

The DOJ’s Antitrust Division filed a civil antitrust lawsuit in the US District Court for the District of Columbia to block the proposed merger. At the same time, the Division filed a proposed settlement that, if approved by the court, would resolve the Department’s competitive concerns.

“This structural solution ensures that American consumers will continue to benefit from vigorous competition for a critical input used in everyday consumer staples like chicken soup, chicken broth and pet food,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Today’s settlement fully preserves competition in the sale of chicken-based food ingredients.”

According to the complaint, without the divestiture, the combined company would control over 75% of the domestic market for the manufacture and sale of chicken-based food ingredients. These ingredients are derived from chicken and sold to food manufacturers for use in a variety of human and pet food products. Without the required divestiture, the combined company likely would have been able to increase prices, reduce service and quality, and diminish innovation in the market for chicken-based food ingredients.

Full Content: DOJ

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