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DOJ Sues to Block Sale of Tyson Plant

by 5m Editor
11 May 2011, at 11:55am

US - The Department of Justice has moved to block the sale of a Tyson Foods plant in Harrisonburg, Virginia to George's INc because it claims the deal could hurt competition for farmers in the area.

The Department of Justice has taken out a civil lawsuit against the processing giant saying that the sale would reduce the number of poultry processors around Harrisonburg, giving farmers little choice when it came time to sign contracts to grow chickens.

Tyson announced the sale of plant in March to poultry producer George’s in March.

According to the Washington Post, a joint statement from teh companies attacked the lawsuit. But made no comment on whether the deal violates US antitrust law.

The companies said the sale will save jobs in the area, and keep contract farmers in business.

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