Kansas Attorney General Steve Six filed suit Monday along with the United States Department of Justice and Attorneys General for the states of Colorado, Iowa, Minnesota, Missouri, Montana, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Texas and Wyoming to block the acquisition by JBS Beef, SA, of National Beef Packing Co.

National and JBS are currently the third and fourth largest beef processors in the United States, respectively. In combination with JBS’s acquisition of Smithfield Beef Group, Inc., which is not being challenged, the deal would give the Brazil-based JBS, the world’s largest beef processor, a third of the U.S. fed cattle processing market, making it the largest beef processor in the Unites States, and concentrating over 80% U.S. fed cattle processing capacity in only three firms.

According to the complaint filed today in the federal district court in Chicago, Illinois, the combination of JBS and National would give JBS and the remaining two large beef processors, Tyson and Cargill, the market power to reduce the price they pay to ranchers and feed yards for cattle in the high plains and southwestern United States. At the same time, this increase in market power would enable JBS, Tyson and Cargill to raise the prices they charge customers, such as supermarkets, for processed beef.

“The cattle industry is vitally important to the people of Kansas, contributing over $6 billion to the state economy last year. This deal threatens the vitality of this important industry. It would reduce the amount Kansas cattle producers get paid for their cattle, while at the same time increasing the amount Kansas consumers pay for their beef. It’s a bad deal for the people of Kansas, and it needs to be stopped.”

The Office of the Attorney General has been investigating this transaction since May of this year in conjunction with the U.S. Department of Justice and several other state Attorneys General.