Nestle Receives OK From FTC on Alpo Acquisition

Nestle Food Co., a Glendale-based unit of the Swiss food conglomerate, said it has received word from the Federal Trade Commission that no antitrust action will be taken against Nestle related to its 1994 acquisition of Alpo Petfoods from London-based Grand Metropolitan.

Nestle, maker of Friskies and Mighty Dog pet foods, agreed last year to acquire Alpo for $510 million in cash. Initially, the FTC signaled that the proposed acquisition would not be permitted unless Nestle sold its Friskies pet food production facility in Fort Dodge, Iowa. But the FTC has since decided that Nestle will not be required to sell that facility, the company said.

The purchase of Alpo augments Nestle’s already strong presence in the cat food market with a popular dog food brand. Industry analysts said last year that the acquisition makes Nestle the market share leader in the cluttered pet food industry with 17.1% of the market, edging out longtime industry leader Ralston Purina by 1/10 of a percentage point.