According to two sources which told Reuters, a group of wheat growing states joined the US Justice Department in conducting investigation over a proposed joint venture by Cargill, CHS and ConAgra. If approved, the said joint venture would make the US flour miller even bigger said same sources.
Led by Oklahoma's attorney general, about a dozen states would join the justice department's antitrust division. This would be about the review of the plan by ConAgra Foods Inc to join Horizon Milling. The latter is a joint venture of Cargill Inc and CHS Inc.
The deal between the two companies was announced last March 5. If successful, the said agreement would combine the companies that would have control in about one third of US flour milling capacity. This would dwarf all competitors in size and market reach.
Currently, Horizon Million is the biggest miller in the US.
The sources said that once the deal is closed, the new venture to be called Ardent Mills will have the power to illegally push down prices received by farmers for their wheat.
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