Canada-Sale of meat plant gets green light.

CANADA-MEAT PLANT SALE GETS GREEN LIGHT.

Canada’s Competition Bureau won’t challenge the sale of one of Canada’s largest beef-processing plants.

Tyson Foods announced last spring it was selling Lakeside Farm Industries of Brooks to Alberta-based XL Foods for $106 million, pending regulatory approval.

"We’re anxious to make the Lakeside part of our company and believe it will complement out other Canadian operations," said Brian Nilsson, XL Foods’ co-CEO.

Now that the Competition Bureau has given its blessing, the deal is expected to close next month.

Before rendering its decision, the Competition Bureau has interviewed more than 50 parties who could be affected by the sale.

The primary concerns raised by industry participants were not related to the transaction, but rather to the possibility that the Lakeside plant in Brooks would close if the transaction did not proceed," the Competition Bureau said in a statement.

The federal agency also said it will continue to monitor the industry and reassess the competitive impact of the sale once the outcome of the country-of-origin debate is resolved.

The proposed U.S. law would require meat products sold in the U.S. to state their country of origin.

U.S.-based Tyson is selling the beef-processing plant because "it simply no longer fits our company’s long-term strategy," said interim CE0 Leland Tollett.

Tyson said the sale includes the packing, feedyard and fertilizer assets of Lakeside Farm Industries Ltd. and its subsidiary Lakeside Packers.

The Lakeside plant has the capacity to slaughter and process 4,700 cattle per day, and its product is sold primarily in Canada and the U.S.