It’s no secret that U.S. President Joe Biden’s administration is hypersensitive read more to corporate mergers that could reduce competition. Another sore point right now is consumer price inflation, which is running at a four-decade high read more . Flying dangerously near the intersection of these concerns is America’s huge meat industry, in particular poultry production, where Cargill and Continental Grain are trying to buy Sanderson Farms (SAFM.O).
The $4.5 billion deal announced last August isn’t an obvious target for trustbusters. With a potential combined market share of 13.5%, according to a Reuters analysis, there are far bigger nuggets to fry like sector leaders Tyson Foods (TSN.N) and Pilgrim’s Pride (PPC.O), each with more market power on its own.
Yet it’s unclear how freely Biden’s competition cops will range relative to the traditionally narrow remit in the United States. A history of price-fixing and the like read more in the chicken world doesn’t help. And the cost of barbecue-friendly wings, for example, has soared read more . The antitrust revamp could easily turn into a game of chicken.
