HP Hood abandons plans to merge

BURLINGTON, Vt. – HP Hood Inc. has abandoned plans to merge with the nation’s second-largest dairy company, officials said.

Instead, Hood of Chelsea, Mass., will enter into a scaled-down deal with Dallas-based National Dairy Holdings and the Dairy Farmers of America. DFA is a national farm cooperative and half-owner of NDH.

The original proposal would have given DFA a hand in 90 percent of the milk that flows to processors in New England.

That level of market control drew the interest of federal and state antitrust investigators.

Under the new proposal Hood would own 30 percent of NDH; DFA would own 15 percent of Hood.

Portions of the original proposal remain intact, including top executives who will share the leadership of Hood and NDH.