The US DOJ challenges the acquisition of a partial interest of a competing company in the dairy sector (Dairy Farmers)

The Department of Justice’s challenge to unwind the Dairy Farmers of America (“DFA”) acquisition of a partial interest in Southern Bell Dairy is interesting on a number of levels. This article addresses two issues raised by Dairy Farmers that antitrust attorneys should consider when counseling clients and litigating a merger or acquisition under Section 7: (1) when a history of collusion triggers a presumption of illegality; and (2) when partial equity and non-voting ownership interests by a single party in two dominant competitors trigger the Philadelphia National Bank presumption of illegality. Background On April 23, 2003, the DOJ and the State of Kentucky jointly brought suit against Dairy Farmers of America and Southern Belle under Section 7 of the Clayton Act, (15 U.S.C. § 18.)

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Noah A. Brumfield, The US DOJ challenges the acquisition of a partial interest of a competing company in the dairy sector (Dairy Farmers), 6 November 2006, e-Competitions November 2006, Art. N° 37107

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