Cargill, Continental Close U.S. Chicken Deal
Cargill and Continental Grain Co. announced on Friday, July 22, 2022, that they had concluded their deal to buy Sanderson Farms Inc., the third largest chicken producer in the United States, for $4.53 billion, according to Reuters' Diane Bartz.
Photo Insert: Sanderson Farms Inc., the third largest chicken producer in the United States.
Sanderson will be merged with Continental Grain subsidiary Wayne Farms as part of the merger, which was announced in August. Sanderson will close its doors on Friday. According to a person familiar with the situation, any unresolved issues with the Justice Department were handled prior to the closing.
The agreement sparked worry on Capitol Hill, where senators requested the Justice Department to investigate it out of fear of raising prices. The Justice Department, which was looking into the purchase for antitrust violations, declined to comment.
According to Wells Fargo study, prices for chicken wings and breasts have risen 38 percent and 24 percent, respectively, since February.
Concerned about price increases in general, and particularly in the meat sector, the Biden administration said in January that it would spend $1 billion and implement new guidelines to address a lack of "meaningful competition" in meat processing.