US: Sugar merger bad for market, sues to halt

WASHINGTON — The Justice Department filed a lawsuit Tuesday seeking to block a major U.S. sugar manufacturer from acquiring its rival, arguing that allowing the deal would harm competition and consumers.

The suit was filed in federal court in Delaware. It comes about eight months after U.S. Sugar announced it reached an agreement to acquire the Imperial Sugar Co., one of the largest sugar refiners in the nation.

The lawsuit is the latest example of the Justice Department’s approach to aggressive enforcement of federal antitrust law that officials say is aimed at ensuring a fair and competitive market.

It comes months after President Joe Biden signed an executive order that called on the Justice Department and Federal Trade Commission to vigorously enforce antitrust statutes and promote market competition.

“Robust antitrust enforcement is an essential pillar of the Justice Department’s commitment to ensuring economic opportunity and fairness for all,” Attorney General Merrick Garland said in a statement.

U.S. Sugar said it plans to fight the lawsuit. It argued that the acquisition will increase production and distribution of refined sugar, provide a more secure supply and would not result in higher prices.

The Justice Department disagreed.

It said the proposed acquisition would “further consolidate an already concentrated market for refined sugar.”

It would cut down on competition, leaving only the new consolidated company and one other major sugar company selling a significant share of refined sugar in the southeastern U.S., the Justice Department contends.