US sues to halt sugar merger, says it would harm competition | AP News

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The Justice Department has filed a lawsuit seeking to block a major U.S. sugar manufacturer from acquiring its rival. The suit is the latest example of the Justice Department’s approach to aggressive enforcement of federal antitrust law.

The suit was filed in federal court in Delaware. It comes about eight months after U.S. Sugar announced it reached an agreement to acquire the Imperial Sugar Company, one of the largest sugar refiners in the nation.

that called on the Justice Department and Federal Trade Commission to vigorously enforce antitrust statutes and promote market competition.“Robust antitrust enforcement is an essential pillar of the Justice Department’s commitment to ensuring economic opportunity and fairness for all,” Attorney General Merrick Garland said in a statement. “We will not hesitate to challenge anticompetitive mergers that would harm American consumers and businesses alike.

“This transaction will improve supply chain logistics and will not result in higher prices or any harm to customers and consumers,” the company said in a statement. “We look forward to making our case in court.” The Justice Department says U.S. Sugar, which operates a large refinery in Florida, sells all of its sugar through a marketing cooperative known as the United Sugars Corporation. Imperial Sugar operates a refinery in Savannah, Georgia and a sugar transfer and liquidation facility in Ludlow, Kentucky., who leads the Justice Department’s antitrust division, said the companies were “seeking to further consolidate an already cozy sugar industry.

 

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