The Department of Justice (DOJ) Antitrust Division determined that purchase by Zen-Noh Grain Corporation (ZGC) of 35 operating and 13 idled grain origination elevators from Bunge North America would violate Section 7 of the Clayton Act. Those elevators are primarily along the Mississippi River and its tributaries.
In its proposed final judgment, ZGC would be required to divest nine grain elevators in five states along the Mississippi River and its tributaries.
DOJ said the action is based in part on ZGC operating in some areas along the Mississippi and Ohio Rivers along with its affiliate CGB Enterprises in competition against Bunge. "The acquisition will eliminate competition between ZGC and Bunge in those locations; as a result, many U.S. farmers are likely to receive lower prices and poorer quality service when seeking to sell their grain," DOJ said in the proposed Final Judgment.
ZGC sought to acquire the Bunge facilities for approximately $300 million under an agreement in April 2020.
In the proposed Final Judgment, DOJ said there were overlapping draw areas where ZGC would be required to divest included McGregor, Iowa; Albany/Fulton and Shawneetown, Illinois; Caruthersville, Missouri; Huffman, Osceola and Helena, Arkansas; and Lake Providence and Lettsworth, Louisiana. Comments on the proposed Final Judgment are due 60 days from today.