Text: SCR00014 Text: SCR00016 Text: SCR00000 - SCR00099 Text: SCR Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 SENATE CONCURRENT RESOLUTION NO. __
1 2 BY BARTZ
1 3 A Senate Concurrent Resolution to urge that the
1 4 United States Congress and the United States
1 5 Department of Justice take all actions necessary
1 6 in order to prevent the merger of Cargill Inc.
1 7 and the grain unit of Continental Grain Co.
1 8 WHEREAS, agricultural producers are facing
1 9 financial hardship caused by low commodity prices
1 10 offered by processors and exporters who are
1 11 increasingly moving to consolidate business operations
1 12 in a manner that reduces competition in the
1 13 marketplace; and
1 14 WHEREAS, Cargill Inc. and Continental Grain Co. are
1 15 the two largest grain exporters in the United States,
1 16 and two of the country's largest privately held
1 17 companies; and
1 18 WHEREAS, Cargill Inc. is in the process of
1 19 acquiring the grain unit of Continental Grain Co. that
1 20 analysts estimate may be purchased for more than $300
1 21 million; and
1 22 WHEREAS, under the proposal, Cargill Inc. will
1 23 acquire the grain storage, transportation, export, and
1 24 trading operations of Continental Grain Co. in North
1 25 America, Europe, Latin America, and Asia; and
1 26 WHEREAS, the two companies together control more
1 27 than 40 percent of all United States corn exports, 34
1 28 percent of soybean exports, and 20 percent of wheat
1 29 exports; and
1 30 WHEREAS, the acquisition of the interest in
2 1 Continental Grain Co. by Cargill Inc. will provide
2 2 anticompetitive control of export grain sales, grain
2 3 storage facilities, barge capacity, and some rail
2 4 service; and
2 5 WHEREAS, the combined company will stifle or drive
2 6 out competition in local markets and at key
2 7 distribution points, including along the Mississippi
2 8 River; and
2 9 WHEREAS, United States Secretary of Agriculture Dan
2 10 Glickman has expressed concerns about the far-reaching
2 11 implications of a proposed merger of the nation's two
2 12 largest grain exporters; and
2 13 WHEREAS, the United States Department of Justice
2 14 must approve the acquisition; NOW THEREFORE,
2 15 BE IT RESOLVED BY THE SENATE, THE HOUSE OF
2 16 REPRESENTATIVES CONCURRING, That the United States
2 17 Congress enact measures to ensure that competition in
2 18 the grain industry is not stifled by companies that
2 19 seek monopolistic control of the market; and
2 20 BE IT FURTHER RESOLVED, That the United States
2 21 Department of Justice resist the proposed merger of
2 22 Cargill Inc. and the grain unit of Continental Grain
2 23 Co.; and
2 24 BE IT FURTHER RESOLVED, That the Secretary of the
2 25 Senate mail copies of this resolution to the President
2 26 of the United States; the United States Secretary of
2 27 Agriculture; United States Attorney General; the
2 28 President of the Senate of the United States; the
2 29 Speaker of the House of Representatives of the United
2 30 States; the chairman of the United States Senate
3 1 Committee on Agriculture, Nutrition, and Forestry; the
3 2 chairman of the United States House of Representatives
3 3 Committee on Agriculture; and members of Iowa's
3 4 congressional delegation.
3 5 LSB 2104SS 78
3 6 da/sc/14
Text: SCR00014 Text: SCR00016 Text: SCR00000 - SCR00099 Text: SCR Index Bills and Amendments: General Index Bill History: General Index
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