Wednesday, November 08, 2006

Smithfield deal gets DOJ scrutiny

A merger between two of the nation's largest pork processing companies is officially under review by the antitrust lawyers at the Department of Justice, according to Smithfield Foods Inc. and Premium Standard Farms Inc.
Smithfield, based in the Virginia town of the same name, agreed to pay more than $810 million in cash and stock, including debt assumption, for Premium Standard Farms, the nation's second-largest pork producer and the sixth-largest pork processor. After a 30-day initial review at the DOJ, the agency has formally issued a second request for information, a move that could mean another six months or so before the agency makes a decision on the deal.

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