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Nestle-Ralston deal purrs
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December 11, 2001: 2:37 p.m. ET
FTC clears merger of pet food makers provided they divest some cat food brands.
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NEW YORK (CNN/Money) - The U.S. Federal Trade Commission Tuesday approved Nestle SA's $10.1 billion acquisition of Ralston Purina Co., provided the companies divest some of their dry cat food brands.
An FTC spokesman confirmed to CNN/Money.com Tuesday that the Commission voted 4-to-0 in favor of the deal on condition they sell their Meow Mix and Alley Cat dry cat food brands to Hartz Mountain Corp. a unit of investment firm J.W. Childs Equity Partners II LP.
The companies will have 20 days from the time the consent order takes effect in which to divest the brands.
FTC Chairman Timothy Muris recused himself from the matter because some of his previous work posed a conflict of interest, the spokesman said.
"The order will ensure that Childs becomes a strong competitor in the market for dry cat food, to the benefit of consumers nationwide," Joe Simons, director of the FTC's Bureau of Competition, said in a statement accompanying the decision.
The companies have scheduled an 11:30 a.m. ET press conference Wednesday to further discuss details of the approval and the purchase, a Ralston-Purina spokesman said.
Ralston's (RAL: up $0.42 to $33.47, Research, Estimates) stock climbed 1.30 percent to $33.48 Tuesday afternoon following the announcement.
The merger brings together such household names as Ralston's Dog and Cat Chow and Nestle's Friskies and Mighty Dog pet foods.
Vevey, Switzerland-based Nestle, which first announced the deal in January, was seeking a pet food partner to expand its global presence in that business, much as its human food division has had for some time.
Nestle was No. 2 behind Ralston Purina in the U.S. pet food market, analysts have said. The deal gives Ralston global distribution, which it previously lacked. 
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