Milling & Baking News - May 27, 2014 - 14

Business 

Proposed Ardent Mills settlement
announced by Justice Department

Dallas, Minneapolis and the Bay Area."
Specifically, the Justice Department
said without the divestures, hard
wheat flour prices would be higher
Continued from Page 1
industrial bakers and food service in California, Texas and the Upper
by the Antitrust Procedures and Pen- companies, paying higher prices for Midwest.
The D.O.J. defined hard wheat
wheat flour and ultimately consumalties Act (known as the Tunney Act).
"Any person may submit written ers paying more for products they flour as flour with "high gluten concomments concerning this proposed enjoy in their everyday lives, such tent," "suited for baking bread, rolls,
settlement during a 60-day comment as bread, cookies and crackers," said bagels, pizza dough and similar
period to Maribeth Petrizzi, Chief, deputy assistant attorney general hearty baked goods."
Similarly, the D.O.J. said
Litigation II Section, Antitrust
soft wheat flour prices
Division, U.S. Department of
would be higher in SouthJustice, 450 Fifth Street, N.W.,
ern California and North
Suite 8700, Washington, D.C.
Texas without the divesti20530," the D.O.J. said. "At
tures.
the conclusion of the 60-day
"Soft wheat flour, which
comment period, the U.S.
has low gluten content,
District Court for the District
is well suited for baked
of Columbia may enter the
goods that are lighter
proposed settlement upon a
and flakier, such as cakes,
finding that it is in the public
cookies and crackers," the
interest."
D.O.J. said. "Both types of
The Justice Department
said it was assisted by the Ardent Mills will be headquartered in Denver (pictured above) flour are made and sold by
flour millers - including
California Attorney General with satellite offices in Omaha, Neb., and Minneapolis.
ConAgra Mills and Horiin its investigation.
"Without the Antitrust Division's for the Antitrust Division Renata zon Milling - to industrial bakers,
required divestitures, the creation of B. Hesse. "The divestitures will en- food processors, food service compaArdent Mills would have resulted in sure that competition for hard and nies, distributors and retail sellers of
less competition in the sale of wheat soft wheat flour sales is preserved flour for home use."
In its complaint, the D.O.J. alleged
flour, resulting in customers, such as in regions surrounding Los Angeles,
that in the relevant markets, the creation of Ardent would "eliminate
head-to-head competition between
ConAgra Mills and Horizon Milling, increase the likelihood that flour
milling capacity would be closed,
and increase the likelihood of anWASHINGTON - "We are excited to reach agreement while focusing its attention on
ticompetitive coordination among
this milestone in the formation of Ardent helping customers innovate and grow and
flour millers, which would raise
Mills and eagerly anticipate the joint venture providing expanded opportunities for wheat
flour prices for customers in the relbeginning operations this month," said Paul growers."
evant markets."
They said the transaction remains subject
Maass, president of Private Brands and ComThe Justice Department said Miller
mercial Foods for ConAgra Foods, Inc. "We to financing and other certain customary
Milling, the acquiring company, "has
strongly believe in the merits of this transac- closing conditions.
only a minimal presence in the regions
Emphasizing benefits that will accrue to
tion and the benefits it will bring to customof concern; its acquisition of the divesers, consumers, wheat suppliers, sharehold- CHS Inc. member wheat growers and grain
titure mills will create a substantial,
handlers was Mark Palmquist, executive
ers and employees."
independent and economically viMr. Maass and other partners looking to vice-president and chief operating officer-Ag
able competitor in each relevant marestablish Ardent Mills as a joint venture of- Business, CHS Inc.
ket. The proposed settlement also pro"The formation of Ardent Mills will profered comments May 20 after the U.S. Dehibits the companies from exchanging
partment of Justice said its Antitrust Division vide expanded opportunities for wheat
information related to wheat purchashad reached an agreement with the group growers and co-ops because the new compaes or use by customers to which the
that will allow the deal to move forward. ny's asset base will provide additional sourccompanies have sold wheat."
The other partners in Ardent Mills are Car- ing opportunities," he said. "In addition,
ConAgra Foods, Inc., Cargill and
gill and CHS, Inc. The D.O.J. settlement was Ardent Mills' product innovation capabilities
CHS first announced plans for the
announced 441 days after the companies' and other strengths will enable these wheat
creation of Ardent in March 2013.
March 2013 announcement of their intention growers to further connect to the consumer
Ardent headquarters will be located
marketplace."
to combine milling assets to create Ardent.
in Denver.
Scott Portnoy, a corporate vice-president
"Today's settlement is a result of our onConAgra Foods and Cargill will
going dialogue with the U.S. Department of at Cargill, pointed to downstream benefits.
each own a 44% stake in Ardent Mills,
"This joint venture positions Ardent Mills
Justice, and we are pleased to have the reguwith CHS owning a 12% interest. All
latory review completed," the companies to deliver greater value and innovation to
three companies will have representasaid. "Once formed Ardent Mills will work customers and consumers while enhancing
tives on Ardent Mills' board of directo fulfill the obligations under the settlement customer and consumer choice," he said. MBN
tors. MBN

Ardent partners' enthusiasm
undiminished by delays

14 / May 27, 2014 Milling & Baking News

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Milling & Baking News - May 27, 2014

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