WASHINGTON – Sen. Charles Grassley has asked the Justice Department to investigate the purchase of Cargill's pork division by JBS USA Pork.
The Iowa Republican questions whether the $1.45 billion deal will restrict competition and leave consumers paying more for pork.
"I urge the antitrust division to thoroughly examine this proposed acquisition to preserve a competitive market in the pork industry," Grassley wrote to Assistant Attorney General William Baer in a letter dated Monday.
Grassley said he wants to make sure the sale does not "facilitate … anti-competitive and predatory business practices in the industry." The purchase will consolidate 71 percent of the nation's pork processing capacity among four companies, he added.
Grassley expressed concern not only for consumers but for farmers' "marketing options" in his own state which includes a giant Cargill meat processing plant in Ottumwa.
A Cargill spokesman responded to news of Grassley's request for an investigation with an e-mail statement to the Star Tribune.
"We've made the appropriate filings with the U.S. Department of Justice, which is standard procedure for a transaction of this type," spokesman Michael Martin said. "We look forward to their review."
When the purchase plans became public in late June, Martin told the Star Tribune that Minnetonka-based Cargill was "not looking to sell our pork business, however JBS approached us with an offer we had to consider."
