The U.S. Department of Justice has dropped its antitrust investigation into JBS USA's acquisition of Canadian-based beef packer XL Foods, allowing the company to complete its purchasing transaction effective April 8.

JBS last year announced the intended acquisition of two U.S. plants, located in Omaha, NE, and Nampa, ID. The plants were part of a larger purchase that included a feedlot and two other plants in Canada.

Together, the Omaha and Nampa plants have the capacity to process 2,200 cattle/day. However, the Nampa plant is currently idle and the company has no immediate plans to reopen the facility.

JBS moves forward with acquisition of beef packing plants in Idaho and Nebraska.

The purchase price for the assets was $50 million in cash and $50 million in JBS S.A. shares. About 40 livestock and consumer groups in the U.S. denounced the acquisition, fearing it would reduce competition and harm cattle producers in the U.S.

"We request that no early termination of the antitrust evaluation regarding the acquisition of the two U.S.-based beef packing plants be granted and that the Justice Department make a second request for information to extend the investigation," the groups wrote in a December 2012 letter.

To read the entire article, click here.

 

You Might Also Like:

What If The Drought Continues In 2013?

7 Common Fencing Mistakes

Two Common Questions Consumers Ask Most At The Meat Counter

Are We Headed For A Farmland Crash?