Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Tyson to Sell Hog-Trading Unit in Hillshire Merger Accord

Aug. 27 (Bloomberg) -- Tyson Foods Inc., the largest U.S. meat producer, reached a settlement with antitrust regulators that clears its $7.8 billion acquisition of Hillshire Brands Co.

Tyson agreed to sell its Heinold Hog Markets division, which purchases female pigs and resells them to packers, in order to preserve competition, the Justice Department said in a statement today.

“Today’s proposed settlement will help ensure that hog breeders in the United States will continue to receive the benefits of vigorous competition when selling sows,” Bill Baer, the head of the antitrust division, said.

Tyson, based in Springdale, Arkansas, agreed to buy Hillshire Brands, the maker of Jimmy Dean sausages, in July to expand further into the market for prepared, processed foods by adding retail brands.

Hillshire Brands fell as much as 5.9 percent to $59.20 after the Justice Department’s lawsuit was filed in federal court in Washington. The shares later erased the losses. The settlement, which requires court approval, resolves the complaint.

Tyson’s sales were $34.4 billion last year. Heinold Hog Markets had revenue of about $270 million, according to the Justice Department.

The case is U.S. v. Tyson Foods Inc., 14-01474, U.S. District Court for the District of Columbia (Washington).

To contact the reporter on this story: David McLaughlin in Washington at dmclaughlin9@bloomberg.net

To contact the editors responsible for this story: Sara Forden at sforden@bloomberg.net Simon Casey, Andrew Dunn

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.