The U.S. Justice Department is investigating a potential deal for Dairy Farmers of America to acquire the bankrupted Dean Foods.
A Justice Department representative confirmed to the Wall Street Journal this week the investigation is probing the potential loss of competition in U.S. milk sales, as Dean Foods and DFA are among the largest milk processors in the country.
Dairy Farmers of America represents roughly 22 percent of all U.S. milk processing, while Dean Foods is self-described as “the largest processor and direct-to-store distributor of fresh fluid milk and other dairy and dairy case products in the United States.”
Dean Foods announced its bankruptcy in November of last year, while pledging to use the process to “protect and support its ongoing business operations.”
Dean Foods also announced at the time that it was engaged in advanced discussions with Dairy Farmers of America regarding a potential sale of all assets of the company.