Two San Diego–based tuna companies, Bumble Bee Foods and Chicken of the Sea (which is owned by a Thailand firm, Thai Union Group), abandoned plans to merge after the Department of Justice said the merger could be anti-competitive.
The deal would have combined the second and third largest sellers of shelf-stable tuna in the United States, according to a Department of Justice news release from December 3.
The tuna market has long been dominated by three major brands. Starkist is the industry leader, with a 36 percent share of the market. Bumble Bee and Chicken of the Sea together account for 38 percent of the canned-tuna market, according to figures published last December, when the merger proposal was announced.
The Department of Justice, after a long study, concluded that the market is not functioning competitively now, and further consolidation would only make things worse.
Two San Diego–based tuna companies, Bumble Bee Foods and Chicken of the Sea (which is owned by a Thailand firm, Thai Union Group), abandoned plans to merge after the Department of Justice said the merger could be anti-competitive.
The deal would have combined the second and third largest sellers of shelf-stable tuna in the United States, according to a Department of Justice news release from December 3.
The tuna market has long been dominated by three major brands. Starkist is the industry leader, with a 36 percent share of the market. Bumble Bee and Chicken of the Sea together account for 38 percent of the canned-tuna market, according to figures published last December, when the merger proposal was announced.
The Department of Justice, after a long study, concluded that the market is not functioning competitively now, and further consolidation would only make things worse.
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