Senator Elizabeth Warren, backed by some dozen other U.S. lawmakers, told the Justice Department that a plan to merge chicken producer Sanderson Farms with smaller rival Wayne Farms "raises significant antitrust concerns," reports Reuters.
Cargill Inc. and Continental Grain Co. announced in August they would buy Sanderson Farms, the third largest chicken producer, and combine it with Continental Grain's Wayne in a deal worth $4.53 billion.
In the letter, sent on Wednesday to Jonathan Kanter, head of the department's Antitrust Division, Warren, Representative Mondaire Jones and others said the poultry industry has a history of colluding to fix prices for consumers.
"This mega merger, in a sector already plagued with consolidation and illegal behaviors that harm farmers and consumers alike, represents a new threat to building a competitive agricultural industry," the lawmakers wrote.
"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."
Cargill and Continental Grain said in a statement that the planned deal would create a new player "which will be in an ideal position to expand options and increase supply for consumers."
