Create a free Manufacturing.net account to continue

DOJ Sues JBS Swift, National Beef Over Deal

Regulators are filing a lawsuit to block the world's largest beef processor from buying the nation's fourth-largest operation, saying such a deal could push up consumer prices for beef.

WASHINGTON (AP) -- Regulators are filing a lawsuit to block the world's largest beef processor from buying the nation's fourth-largest operation, saying such a deal could push up consumer prices for beef.

The Department of Justice and attorneys general for 13 states filed the suit Monday against Brazilian beef producer JBS S.A. and National Beef Packing Co. of Kansas City.

In March, JBS had said it would acquire National Beef in a $560 million stock-and-cash deal.

The lawsuit says JBS's buyout of National Beef "would complete a fundamental restructuring of the United States beef-packing industry."

The suit says it would not only lead to higher prices for U.S. consumers but also lower prices for cattle producers, ranchers and feedlots.