The opening of a new venture called Ardent Mills has been delayed by a variety of regulatory concerns. As these concerns appear now to be addressed, the company hopes to begin operations by the end of May.
This flour-milling joint venture was created by Cargill, Inc., ConAgra Foods, Inc. and CHS Inc. The venture, however, was blocked by the Justice Department’s Antitrust Division by means of a civil lawsuit. Still, the Justice Department had proposed a way to settle this matter that would allow for the mill creation to go ahead. To allow for the flour mill to go forward the companies had to divest of four other mills. The mills to be divested include one located in Texas.
The companies had hoped to have Ardent Mills up and running during this year’s first quarter. The regulatory delays encountered, however, made them push back this date to the second quarter. Still, the companies appeared confident that the venture would prove profitable and would “enhance competition.”
Businesses require experienced business law lawyers to guide them through the bureaucratic red tape. Issues concerning regulatory compliance are almost inevitable when it comes to business matters. Not all of the regulatory requirements can be immediately foreseen by businesses, however. When this is not anticipated, delays can be forthcoming that could prove costly to the business.
Businesses cannot ignore an agency as powerful as the U.S. Justice Department. The funding for such a department to regulate businesses is almost unlimited and little progress can be made if federal officials are not in agreement.
Source: NASDAQ.com, “Ardent Mills Venture Seen Starting Soon,” May 20, 2014