Dole plc said in a news release that it mutually agreed to end its agreement with Fresh Express Inc. to sell Dole’s fresh vegetable division.
This announcement comes on the heels of the Department of Justice’s concerns about competition in the packaged salad market, which represents $3.2 billion spending by grocers and customers yearly, the department said in its own news release.
The Department of Justice estimated the proposed acquisition’s value to be $308 million.
“At a time when food companies are already overcharging Americans for groceries, today’s abandonment preserves lower prices and availability for an essential kitchen staple,” said Jonathan Kanter, assistant attorney general of the department’s antitrust division. “This merger would have reduced the number of competitors from three to two and raised grocery prices for food products that are purchased by 85% of American households. I am grateful for the tireless efforts of the Antitrust Division’s lawyers, economists, paralegals and professional staff who made this result possible.”
In the announcement from Dole, the company said it disagreed with the decision and believes the deal would have been pro-competitive and benefited customers and consumers.
“We remain confident that we will have an alternative path forward in the near term that is in the best interests of the Fresh Vegetables Division’s employees, customers and partners, and the Dole plc shareholders,” the company said in its release.
