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Antitrust Regulators Investigate Proposed Dairy Megamerger

By  |  January 27, 2020

Regulators are looking into a possible merger between Dean Foods and Dairy Farmers of America (DFA) and its potential antitrust implications for the industry, according to a report by The Wall Street Journal.

The U.S. Department of Justice has been meeting with retailers and farmers about how the deal would be received, and how it would affect competition in the industry.

“We are investigating Dairy Farmers of America’s potential acquisition of Dean Foods and the potential loss of competition for selling raw milk,” a Justice Department antitrust attorney said.

Dean, which is based in Texas, recently was forced to get protection from bankruptcy after years of struggling, mostly due to Americans drinking less milk. Consumption of milk has declined about 40 percent in the last four years, and production has shifted to smaller plants.

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