Cargill, Continental close U.S. chicken deal
2022.07.22 18:30
FILE PHOTO: A Cargill logo is pictured on the Provimi Kliba and Protector animal nutrition factory in Lucens, Switzerland, September 22, 2016. REUTERS/Denis Balibouse/File Photo
WASHINGTON (Reuters) – Cargill and Continental Grain Co said on Friday that they had closed their deal to buy Sanderson Farms (NASDAQ:SAFM) Inc, the third largest chicken producer, in a deal worth some $4.53 billion.
Under the deal, which was announced last August, Sanderson is being combined with Continental Grain subsidiary Wayne Farms. Sanderson will cease trading on Friday.
The Justice Department, which had been investigating the deal for antitrust concerns, did not immediately respond to a request for comment.
The deal had raised concerns on Capitol Hill, where lawmakers asked for the Justice Department to take a hard look at it because of fear of pushing up prices.
Chicken wings and breasts have climbed 38% and 24% since February year-over-year, respectively, according to research from Wells Fargo (NYSE:WFC).
