Court Blocks Heinz Bid for Beech-Nut

FTC Chairman Robert Pitofsky said the decision "holds the line" on antitrust enforcement. Three companies dominate the U.S. baby-food market, with Gerber, a Freemont, Mich., unit of Switerland's Novartis AG, holding a 65% share of the market, while Heinz and Beech-Nut, a unit of Milno...

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Bibliographic Details
Published inThe Wall Street journal. Eastern edition
Main Author By Mark Wigfield and John R. Wilke
Format Newspaper Article
LanguageEnglish
Published New York, N.Y Dow Jones & Company Inc 30.04.2001
EditionEastern edition
Subjects
Acquisitions & mergers
Antitrust
Appeals
Federal court decisions
Food
State court decisions
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Summary:FTC Chairman Robert Pitofsky said the decision "holds the line" on antitrust enforcement. Three companies dominate the U.S. baby-food market, with Gerber, a Freemont, Mich., unit of Switerland's Novartis AG, holding a 65% share of the market, while Heinz and Beech-Nut, a unit of Milnot Holding Co. of St. Louis, split most of the balance. Milnot is owned by Madison Dearborn Partners Inc., a Chicago equity firm. Last year, the two smaller players convinced a federal district court the merger would create a more efficient challenger to Gerber. In a statement Friday, Heinz and Beech-Nut said they wouldn't contest the ruling. Heinz said that while it will "need to re-evaluate its U.S. infant-feeding strategy in light of today's decision, it remains a leader in the category." Heinz Chairman William Johnson said the fact that half of the world's infant foods are prepared at home "represents a significant upside opportunity for strong global brands like Heinz."
ISSN:0099-9660