HARRISONBURG, Va., May 10 (UPI) -- U.S. Justice officials said they went to court Tuesday to block George's Inc.'s purchase of Tyson Food's chicken processing complex in Harrisonburg, Va.
In a civil antitrust lawsuit filed in U.S. District Court in Harrisonburg, the federal government contends the sale essentially wipes out competition between the two poultry companies for the procurement of chickens in the Shenandoah Valley area.
The Justice Department is requesting the court declare the acquisition unlawful under federal antitrust laws and order divestiture of the Harrisonburg complex or other appropriate relief.
"The department's lawsuit alleges that George's acquisition of Tyson's Harrisonburg chicken-processing facility would reduce growers' ability to receive competitive prices for their services," Christine Varney, assistant attorney general in charge of the Department of Justice's Antitrust Division, said in a release. "America's farmers deserve competitive prices and terms for the sale of their services, and the antitrust division will vigorously pursue anti-competitive acquisitions that stand in the way of achieving that goal."
Before the Tyson-George's deal announced March 18, those companies and JBS/Pilgrim's Pride competed for the services of local chicken growers. The acquisition leaves the region with only two buyers for local farmers.
George's, the nation's 15th-largest chicken processor, and Tyson, the largest, both have headquarters in Springdale, Ark., while JBS/Pilgrim's Pride, the second-largest processor, has its headquarters in Greeley, Colo.
