For Immediate Release
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KOHL HAILS DOJ LAWSUIT TO BLOCK JBS ACQUISITION OF NATIONAL BEEF PACKING CO.

WASHINGTON, DC – Today, US Senator Herb Kohl (D-WI), Chairman of the Senate Antitrust Subcommittee, praised the decision of the US Department of Justice to file a civil antitrust lawsuit to block the proposed acquisition by JBS S.A., currently the third-largest US beef packer, of National Beef Packing Co., the fourth-largest US beef packer. Senator Kohl, following an Antitrust Subcommittee hearing he held in May on JBS' proposed acquisitions, which included the acquisition of National Beef Packing Co., recommended the Department of Justice to block the deal in a letter sent to Assistant Attorney General Thomas Barnett of the Antitrust Division in June.  Senator Kohl's statement follows:

 

I am pleased the Justice Department recognized the likely harmful impact of the proposed acquisition on competition and consumers by JBS of National Beef Packing Company and filed this lawsuit under the antitrust laws to block this acquisition today.

 

The deal would combine the third- and fourth-largest US beef packers, and likely result in retailers, grocers and, ultimately, consumers being forced to pay higher prices for beef.

 

In addition, the acquisition would further erode competition in the meat packing industry and likely hurt ranchers who would have little choice as to whom to sell their cattle.

 

For these reasons, after conducting an investigation and hearing in our Antitrust Subcommittee, I opposed this acquisition and wrote to Assistant Attorney General Barnett in June urging that the Justice Department take action under the antitrust laws to block this acquisition.  While I would have preferred that the Justice Department would have taken action to block the entire JBS acquisition, I am gratified that the Justice Department has taken action to block a portion of these anti-competitive acquisitions.  

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