On Monday the US Department Of Justice (DOJ) said it would appeal a judge’s decision, which cleared the way for US Sugar’s plans to buy rival Imperial Sugar by declaring the proposed merger – which has been strongly opposed by US Antitrust authorities – was legal under antitrust law, Reuters reported. Last week Judge Noreika ruled for the companies, rejecting the government’s request that she stop the deal from going forward.
Related: DOJ Loses Bid To Block Sugar Mega-Merger
The DOJ said in a lawsuit filed last November that the $315 million deal would give some 75% of refined sugar sales in the U.S.’ southeast to U.S. Sugar, owner and member of a cooperative with three other companies, and American Sugar Refining, which sells under the Domino brand.
According to the department’s complaint, US Sugar operates a large sugar refinery in Florida, and sells all of its refined sugar through United Sugars Corporation (United Sugars), a marketing cooperative owned by US Sugar and three other refined sugar producers. Imperial Sugar operates its own sugar refinery in Georgia, and sells its refined sugar directly to customers.
American Sugar Refining, known more commonly by its “Domino” brand name, is the other producer supplying a significant share of refined sugar in the southeastern United States. The complaint further alleges that United Sugars and Imperial Sugar compete head-to-head to supply refined sugar to customers across the Southeast in states stretching from Mississippi to Delaware. This competition has resulted in lower prices, better-quality products and more reliable service for customers across the region.
Responding to Friday’s court ruling, US Sugar said in a statement late Monday that it planned to consummate the transaction as quickly as possible, complete the deal and bring Imperial Sugar Company back into the American family ownership.
US sugar also intends to invest in upgrading Imperial’s Savannah Refinery and operations, and plans to retain the current employees in the facility, its Chief Executive Officer Robert Buker said. DOJ Sugar
Featured News
Nvidia and Microsoft Sued for Allegedly Undercutting AI Technology Patent Prices
Sep 5, 2024 by
CPI
White & Case Strengthens Antitrust and M&A Practices with New Partner Additions
Sep 5, 2024 by
CPI
Federal Judge Dismisses Antitrust Lawyers’ Fee Demand Over JetBlue-Spirit Deal
Sep 5, 2024 by
CPI
Boston Landlords Named as US Sues RealPage Over Alleged Rent-Inflating Practices
Sep 5, 2024 by
CPI
Judge to Weigh Landmark NCAA Settlement Proposal in Antitrust Lawsuit
Sep 5, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Canada & Mexico
Sep 3, 2024 by
CPI
Competitive Convergence: Mexico’s 30-Year Quest for Antitrust Parity with its Northern Neighbor
Sep 3, 2024 by
CPI
Competition and Digital Markets in North America: A Comparative Study of Antitrust Investigations in Mexico and the United States
Sep 3, 2024 by
CPI
Recent Antitrust Development in Mexico: COFECE’s Preliminary Report on Amazon and Mercado Libre
Sep 3, 2024 by
CPI
The Cost of Making COFECE Disappear
Sep 3, 2024 by
CPI