Blog: ConAgra, Cargill milling JV cleared - but plants must be sold
Dean Best | 21 May 2014
ConAgra Foods has secured clearance for its move to join its flour milling business with a venture run by Cargill and CHS - but after the parties agreed to sell off four plants.
The US Justice Department had argued the new venture - Ardent Mills - would hit competition, pushing up costs for the bakery industry and foodservice companies.
The Justice Department has now given the green light after the companies agreed to offload facilities.
ConAgra will sell mills in California, Minnesota and Texas. The existing venture between Cargill and CHS - Horizon Milling - will offload a site in California.
All mills will be sold to Miller Milling Co. – a US subsidiary of Japan's Nisshin Flour Milling.
"This joint venture positions Ardent Mills to deliver greater value and innovation to customers and consumers while enhancing customer and consumer choice," Cargill corporate vice president Scott Portnoy said.
There has been a rise in the number of food companies in the UK filing for insolvency - and the intensification of competition between the country's grocers has been blamed....
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