Dive Brief:
- ConAgra, Cargill, and CHS have pushed back the expected completion date for a joint venture that would change the flour-milling industry. The companies say the regulatory approval process has not been completed.
- The deal, dubbed Ardent Mills, would create a flour-mill joint venture between ConAgra and Horizon Milling. Horizon, a joint venture of Cargill and CHS, is already the largest flour mill operator in the U.S.
- The deal was first announced in March 2012. The companies had planned to close the deal by the end of that year, but regulators were not obliging.
Dive Insight:
As a general rule, we tend to dislike bureaucracies and regulators. But in this particular case, we are grateful that the Justice Department is taking its time. Ardent Mills would alter the face of flour milling forever — and the business is already consolidated to a remarkable degree. This seems like a deal where it's prudent to go slowly.