The U.S. Department of Justice is requiring Tyson Foods Inc. to sell Heinhold Hog Markets, a small hog-purchasing unit that sells sows to sausage makers, in order to settle anti-trust issues and gain clearance for its purchase of Hillshire Brands. Heinhold Hog Markets accounted for only 1% of Tyson’s revenues for 2013 with revenues of approximately $270 million. Without the divestment of Heinhold, once Tyson acquired Hillshire the company would control more than one third of all hog purchases in the U.S. The agreement comes after a coalition of 82 farm, agriculture, and rural groups argued that the Tyson-Hillshire deal would reduce competition within the U.S. meat industry to the point where it would affect farmers, processors, and consumers. The divestment is scheduled to occur within 90 days, but until the sale, Tyson Hog Markets Inc. which includes Heinhold Hog Markets will operate as an independent competitive business. Tyson has made a third extension of its tender offer for shares of Hillshire to allow for time to settle all anti-trust issues.
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