Case Summary
The FTC sought a preliminary injunction to block H.J. Heinz Company's (Heinz) proposed $185 million acquisition of Milnot Holding Company, owner of Beech-Nut Nutrition Corporation (Beech-Nut), citing concerns that the transaction would reduce the number of competitors in the baby food market from three to two, creating a duopoly. Heinz and Beech-Nut are the nation's second- and third-largest producers of prepared baby food. The district court denied the motion, but the U.S. District Court of Appeals for the District of Columbia reversed the federal district court decision and granted the Commission’s request for entry of a preliminary injunction. Soon after, the parties abandoned the transaction.