The U.S. Department of Justice is dropping its lawsuit and will grant approval to the formation of the joint venture that would create the country’s largest seller of wheat flour. The joint venture called Ardent Mills would encompass the flour milling operations of Cargill Inc., CHS Inc., and ConAgra Foods Inc., controlling approximately one third of the U.S. flour business and would have annual sales of $4 billion. U.S. officials have been investigating the deal because of concerns that it would increase the price of wheat particularly for pizza dough, bagels, and cakes in some regions. To gain approval for the deal Cargill, ConAgra, and CHS have agreed to sell four flour plants located in California, Texas, and Minnesota to Minneapolis-based Miller Milling Co. The U.S. has approximately two dozen major milling companies but most are much smaller than Ardent Mills, and there is lingering concern within the industry over the continued consolidation and reduction of competition among wheat buyers. The sale of the four flour mills and the start of operations of Ardent are expected by the end of this month.
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