Senator Elizabeth Warren (D-MA) has addressed a letter to Jonathan Canter of the Department of Justice Antitrust Division opposing the acquisition of Sanderson Farms by a consortium comprising Cargill Inc. and Continental Grain leading to a merger with Wayne Farms. Cargill Inc and Continental Grain claim that the transaction will allow for expansion of operations creating new jobs and benefiting local communities.
The letter included the statement, "this mega merger in a sector already plagued with consolidation and illegal behaviors that harm farmers and consumers alike, represents a new threat to building a competitive agricultural industry". The letter was co-signed by Senators Cory Booker (D-NJ), Richard Blumenthal (D-CT) and Bernie Sanders (I-VT). Senator Warren has frequently used her influence to oppose "big-Ag" requesting investigation of price-fixing and consolidation in the poultry sector.
The offer to purchase Sanderson Farms for $4.5 billion was announced in August 2021. Should the transaction be blocked by the DOJ, Sanderson Farms will be obliged to pay a termination fee of up to $150 million. Details of the transaction are incorporated in a SEC Schedule 14-A statement dated September 3rd, 2021, available on the Sanderson Farms website.