Post Holdings, Inc. (NYSE:POST) and TreeHouse Foods (NYSE:THS) (“TreeHouse”) today announced that the Federal Trade Commission (“FTC”) has notified the companies that it will file a complaint opposing Post’s proposed acquisition of TreeHouse’s private label ready-to-eat cereal business (the “TreeHouse RTE cereal business”).
“We are disappointed and perplexed by the FTC’s decision to attempt to block a combination that produces more effective competition in the $9 billion ready-to-eat cereal category. We will work with TreeHouse to develop an appropriate course of action,” said Rob Vitale, Post’s President and CEO.
“The FTC’s decision to block the combination of our ready-to-eat cereal business with Post is unfortunate,” said Steve Oakland, CEO and President of TreeHouse. “We are highly disappointed because we believe the transaction would enable Post to offer retail customers a full suite of ready-to-eat cereal offerings. We are in the process of reviewing our next steps, but in the meantime, we remain committed to delivering high quality products and great customer service to our customers.”
As a result of this development, the companies cannot provide a timeframe in which they expect the transaction to close, if at all.