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WASHINGTON – The Justice Department filed a suit connected Tuesday seeking to artifact a large U.S. sweetener shaper from acquiring its rival, arguing that allowing the woody would harm contention and consumers.
The suit was filed successful national tribunal successful Delaware. It comes astir 8 months aft U.S. Sugar announced it reached an statement to get the Imperial Sugar Company, 1 of the largest sweetener refiners successful the nation.
The suit is the latest illustration of the Justice Department’s attack to assertive enforcement of national antitrust instrumentality that officials accidental is aimed astatine ensuring a just and competitory market. It comes months aft President Joe Biden signed an enforcement order that called connected the Justice Department and Federal Trade Commission to vigorously enforce antitrust statutes and beforehand marketplace competition.
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“Robust antitrust enforcement is an indispensable pillar of the Justice Department’s committedness to ensuring economical accidental and fairness for all,” Attorney General Merrick Garland said successful a statement. “We volition not hesitate to situation anticompetitive mergers that would harm American consumers and businesses alike.”
The Justice Department argues that the projected acquisition would “further consolidate an already concentrated marketplace for refined sugar.” It would chopped down connected competition, leaving lone the caller consolidated institution and 1 different large sweetener institution selling a important stock of refined sweetener successful the southeastern U.S., the Justice Department contends.
The Justice Department says U.S. Sugar, which operates a ample refinery successful Florida, sells each of its sweetener done a selling cooperative known arsenic the United Sugars Corporation. Imperial Sugar operates a refinery successful Savannah, Georgia and a sweetener transportation and liquidation installation successful Ludlow, Kentucky.
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Assistant Attorney General Jonathan Kanter, who leads the Justice Department’s antitrust division, said the companies were “seeking to further consolidate an already cozy sweetener industry.”
“Their merger would destruct assertive contention successful the proviso of refined sweetener that leads to little prices, amended quality, and much reliable service,” helium said.
The companies announced the acquisition successful March, saying that it would instrumentality Imperial Sugar to all-American ownership. Imperial Sugar is simply a subsidiary of Louis Dreyfus Company, which is headquartered successful the Netherlands. The Justice Department says Imperial Sugar’s revenues were implicit $700 cardinal successful 2020.
When the acquisition was announced, the companies said it would assistance grow accumulation and trim manufacturing costs and would summation the information of the U.S. sweetener supply. The companies besides said a caller combined institution would connection amended contention and grow organisation successful the U.S.
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Representatives for the 2 companies did not instantly respond to requests for comment.
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