Fresh Express Acquisition LLC’s, a wholly-owned subsidiary of Chiquita Holdings Limited (Chiquita), has decided to abandon its proposed $308 million acquisition of Dole plc’s Fresh Vegetables division. The decision to abandon the acquisition was made in response to concerns raised by the Antitrust Division.
Assistant Attorney General Jonathan Kanter of the Antitrust Division emphasized the impact of this decision on consumers, stating, "At a time when food companies are already overcharging Americans for groceries, today’s abandonment preserves lower prices and availability for an essential kitchen staple." Kanter further highlighted the potential consequences of the merger, noting, "This merger would have reduced the number of competitors from three to two and raised grocery prices for food products that are purchased by 85% of American households."
The Justice Department's concerns about competition in the packaged salad market played a significant role in the decision to abandon the proposed acquisition. Kanter expressed gratitude for the efforts of the Antitrust Division's team in achieving this outcome, stating, "I am grateful for the tireless efforts of the Antitrust Division’s lawyers, economists, paralegals and professional staff who made this result possible."
Packaged salad represents a substantial portion of spending by grocers and their customers, amounting to $3.2 billion annually.
