Sen. Warren, others said to renew call for DOJ to scrutinize Sanderson Farms sale (update)
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Update 8:20pm: Adds Wayne Farms response to letter.
Sen. Elizabeth Warren (D-MA), along with a dozen other lawmakers, is renewing a call for the Justice Department to scrutinize Sanderson Farms' (NASDAQ:SAFM) planned sale to Continental Grain and Cargill because it raises "significant" antitrust concerns.
"We respectfully urge the DOJ to scrutinize the proposed Sanderson-Wayne transaction to determine whether it violates the antitrust laws, and the DOJ should oppose the merger if it does, according to a Reuters report, which cited a letter that Warren and other lawmakers sent to the DOJ on Wednesday.
The report comes after Warren in November urged the DOJ to investigate how alleged "anticompetitive practices" in the poultry industry are causing price increases. Warren asked the DOJ to "consider the extensive history of price fixing" in the poultry industry in evaluating the announced sale of Sanderson Farms (SAFM) to Continental Grain and Cargill.
Other lawmakers that signed the letter include Democrats Senators Cory Booker and Richard Blumenthal, independent Senator Bernie Sanders and Democratic Representatives Mondaire Jones, David Cicilline, Hank Johnson and Katie Porter, Reuters said.
Wayne Farms, the unit of Continental Grain, that is combining with Sanderson Farms responded to "inaccuracies" in the letter sent from members of the House and Senate.
After the combination, Wayne and Sanderson will have less than 15% of the market, according to Wayne Farms. Wayne and Sanderson have "minimal" overlap in terms of products or customers, do not have chicken processing plants near each other and don't compete for grower contracts or for workers.
"The price-fixing insinuations made in the letter are completely false," Wayne Farms said. "Neither Wayne Farms nor Sanderson Farms, nor any of their employees, have been named in indictments following any government antitrust investigations or cases about price fixing."
Recall December, Sanderson Farms planned sale to Continental Grain/Cargill gets DOJ second request.