FTC challenge ends J. M. Smucker’s Wesson acquisition
The J. M. Smucker Co. and Conagra Brands have announced the termination of the definitive agreement for J. M. Smucker to acquire the Wesson oil brand from Conagra.
The J. M. Smucker Co. and Conagra Brands have announced the termination of the definitive agreement for J. M. Smucker to acquire the Wesson oil brand from Conagra. The agreement was previously announced on May 30, 2017. On March 5, 2018, the U.S. Federal Trade Commission (FTC) announced that it filed an administrative complaint challenging the proposed transaction.
“While we disagree with the FTC’s conclusion, we have mutually determined with Conagra that it is not in the best interest of either party to expend the anticipated significant additional time and resources to challenge the FTC’s administrative complaint,” said Mark Smucker, chief executive officer. “We believe the FTC underestimated the significant role that private label brands play in the oils category, which account for approximately 50% of all cooking oil sales and hold significantly higher market share at some retailers. This transaction was expected to provide significant cost synergies to ensure that branded oil products would remain competitive in the market.”