CE economists David Sibley and Michael Doane provided assistance to Perdue Farms and Coleman Foods in the review of Perdue’s proposed acquisition by the Antitrust Division of the U.S. Department of Justice.  The Division's investigation focused on the potential effect of the transaction on competition among chicken processors, also known as integrators, for the purchase of services from chicken growers. After considering the possibility of coordination under several theories, including a "multi-market contact" theory which provides that firms may find it more feasible to coordinate on terms, such as payment for grower services, as they interact in more numerous regions, the agency concluded that the additional point of contact resulting from the merger was not likely to increase the risk of coordination due to a number of conditions particular to this specific investigation.

 

Counsel from Venable LLP, Winston and Strawn LLP, and Baker and Botts LLP represented the parties.