Friday, February 20, 2009

Brazilian meatpacker halts purchase of K.C. beef firm, which Justice Department was trying to stop

Last year, we reported that the expansion of JBS, a Brazilian meatpacking company that had bought up a number of U.S. operations, was raising anti-trust concerns. The company was slated to buy Kansas City-based National Beef, but announced today that it is backing out of the deal.

In October, the Justice Department sued to block the sale, saying the sale would limit competition in the beef industry. With the purchase, JBS would have owned 32 percent of the nation's beef market. Today's statement from the company said that "in the absence of satisfactory conditions [it] decided not to follow on with the acquisition." (Read more; subscription may be required)

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