US Sugar Merger deal has been suspended. The seriousness of the situation is such that a lawsuit has been filed. The Department of Justice has decided to inflict legal measures in order to stop the merger. According to the department, the takeover of the company is a negative move. The move, if finalized, would have a pessimistic impact on the market. A lot of harm would be done to the welfare of the market and the competition. The deal is speculated to be interfering with the free will of the consumers as well.
The department decided to file the case at the Delaware court. The US Sugar Merger involved two companies. US Sugar and Imperial Sugar Company. The Imperial Sugar Company is one of the most famous refineries in the United States Of America. They were supposed to be merging with US Sugar. This decision was made public eight months prior. However, it seems the future of US Sugar Merger is pretty gloomy. Let us learn more information about the incident in detail below.
US Sugar Merger Unlikely To Be Granted
The future of the US Sugar Merger does not seem very bright. The lawsuit filed by the department of justice is an example of the law of antitrust. This law enables the department to intervene in matters to ensure a fair market. The objective of the law is to make sure that the competition remains fair in the market. This pact was sanctioned by President Joe Biden as well.
Biden authorized order of execution a few months back. The deal included the Federal Trade Commission and the Department of Justice. Soon after the deal was signed, the US Sugar Merger was suspended. It remains to be seen which way the future unfolds.