Sen. Talent Calls for Senate Hearing & Department of Justice Review Over Merger

(WASHINGTON, D.C.) U.S. Senator Jim Talent announced that he is requesting a Senate hearing and full review of the proposed merger of Smithfield Foods, Inc. and Premium Standard Farms, Inc. Sen. Talent sent a letter to U.S. Attorney General Alberto Gonzales calling for review of the impact the merger will have on the agriculture economy, as well assurance of fair treatment for contract growers in Missouri. Additionally, Sen. Talent sent a letter to U.S. Senator Mike DeWine (R-Ohio), Chairman of the Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights, requesting a hearing to review the proposed merger.
Smithfield Foods, Inc., the largest company in the pork processing and pork production industry, and Kansas City based Premium Standard Farms, Inc., one of its larger competitors, formally announced the merger plans this morning.
"I have serious concerns that this merger may significantly impact the competitive environment in the pork production and pork processing industries," said Sen. Talent, Chairman of the Subcommittee on Marketing Inspection and Promotion on the Senate Agriculture Committee. "The plan deserves a thorough review by the Department of Justice in conjunction with the Department of Agriculture and a Congressional hearing. I will review the terms of the merger to ensure that Missouri pork producers who contract with Premium Standard Farms are not harmed and that competition in the marketplace is maintained."
In the letter, Sen. Talent also raised concerns over how the merger will affect competition in the pork industry. He asked that the Department of Justice (DOJ) conduct a thorough investigation through the Antitrust Division to ensure that it complies with the law and that it will do no harm to the competitive environment.
Sen. Talent sent a similar letter to U.S. Department of Agriculture (USDA) Secretary Mike Johanns requesting the Department’s review of the proposed merger. Smithfield Foods, Inc. has agreed to cooperate with any forthcoming reviews or investigations from the DOJ, USDA and Congress.