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Cargill, Continental Grain takeover of Sanderson Farms finally over line

Cargill, Continental Grain takeover of Sanderson Farms finally over line
Cargill, Continental Grain takeover of Sanderson Farms finally over line


The delayed takeover of US poultry processor Sanderson Farms by local agri-food giant Cargill and investor Continental Grain has finally completed.

First announced last August, the US$4.5bn deal was reviewed by the Department of Justice (DoJ) because of anti-trust concerns after President Biden expressed dismay over the concentration of the US meat sector in the hands of a few major players.

There were even suggestions the deal might not be able to proceed.

But following reports of discussions between the would-be buyers and the DoJ – apparently around how farmers and workers are paid – the deal has been signed off.

The DoJ has not yet commented on the merger agreement – announced on Friday (22 July) – or whether concessions were made. Just Food has asked it for its response.

Following the takeover, Sanderson Farms is to be combined with Wayne Farms, a subsidiary of Continental Grain. The new business, named Wayne-Sanderson Farms, will be headquartered in Oakwood, Georgia. Clint Rivers, CEO of Wayne Farms, will become CEO of the combined company.

Rivers said: “I am honoured to lead the new Wayne-Sanderson Farms, which brings together a talented team with complementary operations and cultures and a strong commitment to employees, farmers and the communities where we operate.”

Wayne-Sanderson Farms will operate chicken processing plants and prepared foods plants across Alabama, Arkansas, Georgia, Louisiana, Mississippi, North Carolina, and Texas.

Sanderson Farms CEO Joe Sanderson, Jr. said: “It has been an incredible privilege to lead the Sanderson Farms team over the last 33 years and to continue my family’s legacy by helping to nourish families across the country. I am proud of all we have achieved together, and I am confident that the fairness, honesty and integrity that has been synonymous with the Sanderson Farms name will carry on with Wayne-Sanderson Farms.”

Sanderson Farms attests to being the third-largest US poultry firm, with sales in its 2020 fiscal year exceeding $3.5bn. Wayne Farms claims to be the seventh-largest poultry processor in the US, with annual sales of more than $2bn.

Privately-owned Cargill is one of the largest beef processors in the US.

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