DOJ Sues to Undo Sale of Chicken Processing Plant

The Antitrust Division sued George’s Inc. seeking to undo its $3 million purchase of a chicken processing plant in the Shenandoah Valley from Tyson Foods.  The transaction fell below the reporting thresholds and thus was consummated with antitrust agency review.  The Division alleges that the plant sale will leave George’s with 43% of the chicken market and only one competitor that lacks the capacity to increase production were George’s to cut prices to local chicken farmers.  The Assistant Attorney General stated that farmers have the right to competitive prices for their chickens.  George’s and Tyson responded that the sale saved a failing facility and that George’s intended to increase production, which would benefit local farmers.

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