[image url="http://static.businessinsider.com/image/4af33fae0000000000053881/image.jpg" link="lightbox" caption="" source="" alt="snyderpretz" align="left" size="xlarge" nocrop="true" clear="true"]
Last month, Snyders of Hanover had made an offer to purchase Utz Quality Foods for an undisclosed sum. The deal look like it would get the green light from regulators.
But alas, the deal went sour(dough) and in yet another absurd move by our government, the deal was wound down due to fears of FTC antitrust inquiries. Apparently, you can have too many pretzels:
Deal Journal: This afternoon, the small, family-owned pretzel company, Synders of Hanover, Penn., said it was scuttling its plans to acquire crosstown snack food maker Utz Quality Foods Inc. because it didn’t want to bare the cost of an escalating inquiry in into the deal by the Federal Trade Commission. According to Utz, the FTC had made a second request for information about its business.
“We knew that participating in another FTC request would put a strain on our company and ultimately distract us from what we are here to do every day, which is to provide high-quality snacks to our customers and serve our community,” said Utz chief executive Michael Rice in a statement.
Seriously, this is just too absurd for words.
For one thing: It’s pretzels.
For another thing: How are pretzels a distinct market? Does the FTC really not think that pretzel makers don’t also compete with potato chip makers, nacho chip makers, frito makers, and pretty much everything snack food?
And for one more thing: We’re sure that they would win if they fought the FTC, so it’s depressing that they’re just too small to put up a fight.
Again, as we said, ridiculous.