The U.S. Department of Justice recently filed a civil antitrust lawsuit to block U.S. Sugar’s proposal to acquire rivaling company Imperial Sugar, according to a press release.
The complaint was filed in the U.S. District Court for the District of Delaware and alleges that the deal would cause the vast majority of refined sugar sales across the Southeast to be handled by only two supplies, potentially leading to an increase in the cost of refined sugar for businesses and consumers in the region.
"The Department of Justice (#DOJ) on Tuesday sued two major sugar companies in an effort to block them from merging," Hugo wrote Nov. 23 Twitter post.
According to the lawsuit, U.S. Sugar operates a large sugar refinery in Florida, and sells all of its refined sugar through United Sugars Corporation (United Sugars). Imperial Sugar operates its own sugar refinery in Georgia, and sells its refined sugar directly to customers. The lawsuit also alleges that the two companies compete in the Southeast region and that this competition leads to lower prices, higher quality products and more reliable service for local consumers.
"Robust antitrust enforcement is an essential pillar of the Justice Department’s commitment to ensuring economic opportunity and fairness for all," Attorney General Merrick B. Garland said, according to the lawsuit. "We will not hesitate to challenge anticompetitive mergers that would harm American consumers and businesses alike."
