US probe into Cargill bid
CARGILLS bid for Continental Grains grain-trading operations is to be investigated by the US Justice Department.
The two US companies already play a leading role in domestic and international grain trading.
The deal gives Cargill a commanding position along the Illinois River, with a hold over grain storage facilities around Chicago.
Cargill emphasises it is buying the Continental operations “to run them” rather than close them down.
The company claims that combined operations would still only handle about 10% of all grain moving off US farms.
Large-scale takeovers, like Cargills proposed deal, have recently come fire in the USA.
Four packing companies now control 80% of the red-meat industry, which some producers claim enables them to depress prices.
- Cargill bid to buy Continental Grain, FWi, 11 November, 1998
- Financial Times 08/12/98 page 33