Following the announcement that the parties are abandoning their proposed merger, Ian Conner, Director of the Bureau of Competition, made this statement:
“The FTC unanimously voted to challenge this deal because it was likely to lead to higher prices and reduced quality for private label ready-to-eat cereals. Households across America have benefitted from robust competition between Post and TreeHouse, and they will continue to do so now that this merger has been abandoned.”
On Dec. 19, 2019, the Commission voted 5-0 to file an administrative complaint and authorize staff to seek a temporary restraining order and preliminary injunction in federal court that would stop the proposed acquisition.
The FTC charged that the acquisition would have given Post more than a 60 percent share of an already highly concentrated market, and eliminated the vigorous competition between Post and TreeHouse to serve retailers across the country.
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