The U.S. Department of Justice (DOJ) has announced that Fresh Express LLC, a wholly-owned subsidiary of Chiquita Holdings Limited, has terminated its proposed acquisition of Dole plc’s Fresh Vegetables division. The decision to abandon the $308 million deal was made after the DOJ expressed concerns about competition in the packaged salad market.

According to a press release from Dole, both Dole and Fresh Express mutually agreed to terminate the acquisition on March 28. Their decision was based on the DOJ's indication that it would pursue litigation to block the transaction.

"While Dole strongly disagrees with the Department of Justice’s decision and continues to believe that the transaction was pro-competitive and would have unlocked ongoing benefits to customers and consumers, we remain confident that we will have an alternative path forward in the near term that is in the best interests of the Fresh Vegetables Division’s employees, customers, and partners, and the Dole plc shareholders," said Dole in its press release.

A DOJ press release revealed that grocers and their customers spend approximately $3.2 billion annually on packaged salad products.

"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. 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," stated Jonathan Kanter, Assistant Attorney General for the Antitrust Division, in his press release.

An earlier press release from Dole disclosed that the companies entered into this deal on January 31, 2023. As reported in this release, Dole’s Fresh Vegetables Division generates $1.28 billion in annual revenue.