Sections
Return to News Categories

ALL NEWS SECTIONS:
MOST POPULAR SECTIONS:
Cattle - Hogs / Livestock News
Interest Futures News
Metals Futures News
Reports: Crops, CFTC, etc
Soft Commodities News

Futures and Commodity Market News

DoJ moves to block US Sugar-Imperial Sugar deal

Nov 24, 2021 (MarketLine via COMTEX) --

The US Department of Justice (DoJ) has taken legal action to block US SugaraEUR(TM)s planned acquisition of peer Imperial Sugar.

It has filed a civil antitrust lawsuit in the US District Court for the District of Delaware, in an attempt to thwart the deal aEUR" announced in March aEUR" which it argues would leave an overwhelming majority of refined sugar sales across the south east of the country in the hands of just two producers.

aEURoeAs a result, American businesses and consumers would pay more for refined sugar, a significant input for many foods and beverages,aEUR it said.

Assistant attorney general Jonathan Kanter of the DoJaEUR(TM)s Antitrust Division said: aEURoeUS Sugar and Imperial Sugar are already multi-billion-dollar corporations and are seeking to further consolidate an already cosy sugar industry. Their merger would eliminate aggressive competition in the supply of refined sugar that leads to lower prices, better quality, and more reliable service.

aEURoeThis deal substantially lessens competition at a time when global supply chain challenges already threaten steady access to important commodities and goods. The departmentaEUR(TM)s lawsuit seeks to preserve the important competition between US Sugar and Imperial Sugar and protect the resiliency of American domestic sugar supply.aEUR

In its complaint, the DoJ said 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 aEUR" a wholly-owned subsidiary of Netherlands-based agri-food heavyweight Louis Dreyfus Co. aEUR" is a producer of refined sugar in the US and independently markets and sells its products on its own behalf.

American Sugar Refining, known more commonly by its Domino brand name, is the other producer supplying a significant share of refined sugar in the south-eastern US.

The complaint further alleges United Sugars and Imperial Sugar compete head-to-head to supply refined sugar to customers across the south east in states stretching from Mississippi to Delaware. aEURoeThis competition has resulted in lower prices, better-quality products and more reliable service for customers across the region,aEUR it said.

The DoJ said in its complaint that if US Sugar is permitted to acquire Imperial Sugar, ImperialaEUR(TM)s production would be folded into the United Sugars cooperative, leaving two significant sugar producers in the region.

If the transaction is allowed to proceed, United Sugars and Domino would control the vast majority of refined sugar sales in the region, aEURoeenhancing the likelihood going forward that they will coordinate with each other and refrain from competing aggressively,aEUR it argued.

Florida-based US Sugar is the worldaEUR(TM)s largest vertically-integrated cane sugar milling and refining operation.

MinnesotaaEUR(TM)s United Sugars markets and sells all of the refined sugar produced by its four member-owners aEUR" US Sugar, American Crystal Sugar Company, Minn-Dak Farmers Cooperative, and Wyoming Sugar Company.

http://www.datamonitor.com
Republication or redistribution, including by framing or similar means,
is expressly prohibited without prior written consent. Datamonitor shall 
not be liable for errors or delays in the content, or for any actions 
taken in reliance thereon
comtex tracking

COMTEX_397691759/2227/2021-11-25T02:37:53

Copyright (C) 2021 Datamonitor. All rights reserved

Please read the End User Agreement.
By accessing this page, you agree to the terms and conditions of the End User Agreement.

News provided by COMTEX.


Extreme Futures: Movers & Shakers

Hottest

Actives

Gainers

Today's Hottest Futures
Market Last Vol % Chg
Loading...

close_icon
open_icon