A group of wheat-growing states has joined the U.S. Justice Department in investigating a proposed joint venture by Cargill, CHS and ConAgra, which would make the largest U.S. flour miller even larger, two sources told Reuters.
About a dozen states, led by Oklahoma's attorney general, will join the department's antitrust division in a review of the plan by ConAgra Foods Inc to join Horizon Milling, a joint venture of Cargill Inc. and CHS Inc.
The deal would combine their U.S. flour milling businesses into a venture that would control about one-third of U.S. capacity, dwarfing all competitors in size and market reach. The deal was announced on March 5.
"The antitrust division is investigating a proposed joint venture between ConAgra Foods, Cargill and CHS Inc that would combine the flour milling operations of ConAgra Mills and Horizon Milling into a new joint venture called Ardent Mills," said Justice Department spokeswoman Gina Talamona.
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