US baby food merger called off
Corporation called off their proposed $185 million merger on Friday
after an appeals...
US consumer food giant H.J. Heinz Co. and US Beech-Nut Nutrition Corporation called off their proposed $185 million merger on Friday after an appeals court temporarily blocked the deal, pending a review by the Federal Trade Commission. The FTC wanted to block the merger while it studied the proposed combination, which would leave the American baby-food market with just two major players, Gerber Products Co. and Heinz. The FTC had indicated that the companies would have difficulty proving that the merger would not restrict competition in the estimated $865 million to $1 billion annual market for jarred baby food. Heinz is the nation's second-largest baby food company; Beech-Nut is the third-largest. Heinz issued a brief statement saying: "As a result of the court's decision, the companies said that they would terminate the transaction." Source: Associated Press
