In order to resolve litigation related to the acquisition of the former Tyson Foods Inc. (TSN) plant at Harrisonburg, Va., George's Inc. consented to make capital enhancements to the chicken processing plant.

 

The Wall Street Journal reported last month that the Justice Department, which has vowed to crack down on concentration in agriculture, filed a civil antitrust lawsuit against Tyson's US$3 million sale of the unprofitable plant, saying the deal would reduce the number of chicken processors competing for chickens raised by farmers in the Shenandoah Valley region of West Virginia and Virginia.

 

The DOJ said Thursday (Jun 23) the settlement requires George's to increase the plant's capacity for processing chickens with improvements that include the installation of a special freezer and deboning equipment.

 

Tyson and George's publicly announced the deal on March 18, but the companies were not required to provide information to the DOJ and Federal Trade Commission as the purchase price was less than the minimum reporting threshold.