International seafood producer Thai Union Group on Friday called off a planned purchase of Bumble Bee Foods amid doubts that the deal would clear the U.S. Justice Department.
Thai Union announced an agreement to purchase the maker of Bumble Bee Tuna nearly one year ago for $1.5 billion. Under the proposal, Thai Union, which owns the Chicken of the Sea brand, would have controlled two of the three largest canned tuna labels in the U.S. market.
This week, however, the company and Bumble Bee owner Lion Capital conceded that federal antitrust regulators were unlikely to authorize the sale in the time allotted.
"We have decided to focus our energy on our existing business," said Thai Union President and CEO Thiraphong Chansiri. "Thai Union remains committed to the North American seafood market."
Justice Department officials responded that the tuna market is already dominated by three leading brands — StarKist is the U.S. market leader — and "not functioning competitively today."
"Further consolidation would only make things worse," said Assistant Attorney General Bill Baer.