Federal Trade Commission v. Elders Grain, Inc.
United States Court of Appeals for the Seventh Circuit
868 F.2d 901 (7th Cir. 1989).
- Written by Jamie Milne, JD
Facts
Industrial dry corn was a form of processed corn used by food manufacturers to make products like corn flakes, donuts, and beer. Six producers were responsible for supplying almost all of the industrial dry corn in the United States. The buyers were a handful of large, sophisticated food manufacturers. Illinois Cereal Mills (ICM) (defendant), the second-largest producer of industrial dry corn, purchased Lincoln Grain Company (Lincoln), the fifth-largest producer. The acquisition made ICM the largest producer, with a combined market share of 32 percent. Concerned about potential anticompetitive consequences, the Federal Trade Commission (plaintiff) sued ICM and Lincoln’s parent company, Elders Grain, Inc. (Elders) (defendant), seeking a preliminary injunction requiring the parties to rescind the acquisition pending administrative proceedings. The district court granted the requested preliminary injunction, and ICM and Elders appealed.
Rule of Law
Issue
Holding and Reasoning (Posner, J.)
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