001229 Consumer Group Opposes Tyson-IBP DealDecember 11, 2000Washington - The Consumer Federation of America said that Tyson Food Inc.'s proposed $2.8 billion acquisition of IBP Inc. would further concentrate the livestock industry and mean higher prices at the grocery store. The federation, which represents more than 270 consumer activist groups, asked antitrust regulators at the Justice Department to conduct a “detailed investigation” of the proposed merger. The combination of Tyson and IBP would create a company with annual sales of more than $20 billion, controlling nearly one-third of the U.S. beef and poultry markets and 20% of the pork market, the federation said. “In this case, the danger of further concentrating the beef, pork and poultry industries seems to far outweigh whatever benefits would come from merger-generated economies of scale,” the federation said in a letter to the Justice Department. The proposed merger should “probably” be rejected, the federation said. “At a minimum, Tyson should be required to sell off its pork subsidiary and any beef processing operations in an effort to avoid further concentration in those industries.” The National Farmers Union has raised similar objections to the Tyson-IBP deal, along with Senators Charles Grassley, Paul Wellstone and Tom Harkin. Grassley is a Republican, and Wellstone and Harkin are Democrats.
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