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Groups want a closer look at Tyson-Hillshire deal

A coalition of more than 80 organizations has sent a letter to the U.S. Justice Department opposing the antitrust process for Tyson Foods planned acquisition of Hillshire Brands.  The Justice Department reviews hostile takeovers on an accelerated 14-day timeline, rather than the typical 30-days to consider a more thorough merger review.

The groups, including the National Farmers Union, National Farmers Organization, R-CALF USA and the National Catholic Rural Life Conference say they oppose the early termination of the antitrust examination and seek a second review of the proposed merger.

The letter states the deal would “substantially lessen competition or tend to create a monopoly” They contend the deal would increase Tyson’s power over hog farmers, likely raise prices and reduce consumer choices and undermine competition.

Earlier this year, Hillshire made an offer to buy Pinnacle Foods.  Pilgrim’s Pride then tried to convince Hillshire Brands shareholders it would be better to sell to them than buy Pinnacle.  Tyson Foods then offered a higher price for Hillshire.  A bidding war broke out with Tyson prevailing in the end.

A copy of the letter is available here:

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