The U.S. Department of Justice filed an antitrust lawsuit Monday to stop the acquisition of the National Beef Packing Company by Brazilian company JBS
"We are disappointed that the DOJ does not recognize that this transaction is pro competitive and we plan to vigorously contest the DOJ's attempt to block it," said Steve Hunt, Chief Executive Officer of U.S. Premium Beef, the owner of National Beef.
The proposed acquisition of National Beef was announced in early March. The deal is for $560 million plus the assumption of National Beef's debt. According to the Justice Department, JBS's acquisition of National would substantially restructure the beef packing industry, eliminating a competitively significant packer and placing more than 80% of domestic fed cattle packing capacity in the hands of three firms: JBS, Tyson Foods Inc., and Cargill Inc.