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J.M. Smucker cancels Wesson cooking oil acquisition

The J. M. Smucker Company said it terminated its $285 million deal with Conagra Brands Inc. to buy the Wesson cooking oil brand following the U.S. Federal Trade Commission's administrative complaint against the company.

"While we disagree with the FTC's conclusion, we have mutually determined with Conagra that it is not in the best interest of either party to expend the anticipated significant additional time and resources to challenge the FTC's administrative complaint," CEO Mark Smucker said.

The U.S regulator said March 5 that the acquisition would give Smucker 70% control of the U.S. branded canola and vegetable oils market for grocery stores and retailers, allegedly lessening competition or tending to create a monopoly.

"We believe the FTC underestimated the significant role that private label brands play in the oils category, which account for approximately 50 percent of all cooking oil sales and hold significantly higher market share at some retailers," Smucker added in the company statement.

J.M. Smucker initially announced the deal in May 2017.