Commission does not object to proposed acquisition by dairy products producer-processor- distributor of…
74 F.T.C. 1681 · Nov. 25, 1968 · Digest No. 308
source volume section (74 F.T.C. 1681)
Text is machine-OCR of the printed volume and may contain errors. Advisory opinions are the Commission's views on proposed conduct, not binding orders.
No. 308. Commission does not object to proposed acquisition by dairy products producer-processor- distributor of another processor-distributor.
The Commission issued an advisory opinion telling an appJicant it does not object to a proposed merger on the basis of the information available at this time. The applicant (Company A) is a dairy farmer cooperative association whose members own cows producing raw milk; applicant operates processing plants in one state and sells dairy products principally to independent home deliverymen in two states. The Company (Company B) to be acquired operates a processing plant in one state and sells dairy products to independent home deliverymen, grocery stores and institutions in two states. The processing plants of the two companies are not in the same state. Members of Company A presently supply about fifty percent of the raw milk needs of Company B and it is not anticipated that non-Company A membcrs wi1 be foreclosed as a result of the proposed merger.
Company A and Company B contend that the proposed combination wiIl result in a stronger regional business entity to compete more effectively with integrated chain stores (having their own dairy facilities) and large national dairy companies in selling dairy products to consumers. Commissioner MacIntyre did not participate in this matter. (File No. 693 7046, released Nov. 25, 1968.