FTC Requires Gallo Winery to Sell Some Product Lines in Constellation Deal
April 05 2021 - 12:00PM
Dow Jones News
By Stephen Nakrosis
The Federal Trade Commission on Monday said it approved a final
order which would require E. & J. Gallo Winery to divest
certain product lines as part of its planned acquisition of assets
from Constellation Brands, Inc.
"The final order requires Gallo to divest several product lines
and remove certain others from its asset purchase agreement with
Constellation," the FTC said.
The FTC said the final order settles charges that the
acquisition would violate federal antitrust laws.
According to the complaint, the FTC said the proposed
acquisition would likely "eliminate head-to-head competition
between Gallo and Constellation, and substantially lessen
competition in the United States for six types of wine and spirits
products: entry-level on-premise sparkling wine, low-priced
sparkling wine, low-priced brandy, low-priced port, low-priced
sherry, and high color concentrates."
E. & J. Gallo Winery didn't immediately respond to a request
for comment.
Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
April 05, 2021 11:45 ET (15:45 GMT)
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