The Department said that the deal as originally proposed would have been anticompetitive, resulting in American farmers getting less money for major crops they produce. D.C. The consent decree, if approved by the court, would settle the lawsuit. In its complaint , the Department said the proposed transaction would have eliminated an important competitor for the purchase of crops from U.S. farmers and other suppliers such as independent elevator operators. Cargill and Continental operate nationwide distribution networks that annually move millions of tons of grain and soybeans to customers throughout the U.S. and around the world. Without the divestitures, many American farmers would have faced lower prices for major crops they produce, such as wheat, corn, and soybeans.
Farmers sell wheat, corn, and soybeans at country, rail, river, and port elevators.
This concentration would have increased the risk that prices for CBOT corn and soybean futures contracts could be manipulated. In this case, however, we were concerned about the ability of the combining companies to artificially depress the price they pay suppliers after the transaction. The Department received assistance in the investigation from the U.S. Department of Agriculture, the Commodities Futures Trading Commission, and several state attorneys general. Cargill Inc., a Delaware corporation with its headquarters in Minnetonka, Minnesota, is the largest privately owned business in the U.S., and the second largest grain trader in North America. Continental, a Delaware corporation based in New York City, is the fifth largest grain trader in North America.