US-based meat producer Tyson Foods has received approval from the antitrust division of the US Department of Justice (DOJ) for its previously announced $8.5bn purchase of Hillshire Brands.
DOJ said that Tyson Foods has agreed to sell its sow purchasing business Heinold Hog Markets, in order to move forward with the Hillshire merger.
Under the agreed terms of the proposed settlement, Tyson is required to completely divest Heinold Hog Markets to a buyer approved by the antitrust division.
US DOJ antitrust division Assistant Attorney General in charge Bill Baer, "Farmers are entitled to competitive markets for their products. Today's proposed settlement will help ensure that hog breeders in the United States will continue to receive the benefits of vigorous competition when selling sows.
"Without the divestiture, the proposed acquisition would have eliminated a significant customer for farmers' sows and likely would have resulted in less competition in this important agricultural market."
Earlier in July, Tyson Foods and Hillshire Brands have entered into a definitive agreement under which the former will acquire all outstanding shares of Hillshire Brands for $63 per share.
In 2013, Tyson had generated $34.4bn in total revenues, while Heinold Hog Markets had overall revenues of approximately $270m.
