March 30, 2011

Dean Foods resolves antitrust deal by selling milk plant

A Dean Foods Co. official said the company decided to resolve an antitrust lawsuit by selling its milk plant because ongoing litigation is costly and distracting.

The Justice Department filed the lawsuit against the nation's largest dairy company last year with attorneys general from Illinois, Michigan and Wisconsin.

The lawsuit objected to Dean Foods' 2009 purchase of a Waukesha plant from Foremost Farms USA. The purchase gave Dean Foods control over nearly 60% of milk sales in the states and raised concerns it would quash competition.

The proposed settlement filed in federal court Tuesday (Mar 29) requires the company to sell the plant and notify authorities before it acquires one worth US$3 million or more.

Spokeswoman, Marguerite Copel, said that Dean Foods believes the sale supported competition but this was the best resolution.