Judge Gives OK to Union of Baby-Food Makers

H.J. Heinz Co. may proceed with its $185-million purchase of the maker of Beech-Nut baby foods, U.S. District Judge James Robertson said. He said the Federal Trade Commission failed to prove that the marriage of the No. 2 and No. 3 jarred baby-food makers would reduce competition. The FTC had sought a preliminary injunction blocking Heinz’s purchase of closely held Milnot Holdings Co. until the agency could hold a full-scale administrative trial. The FTC now must decide whether to appeal or take its case to an FTC administrative law judge. Heinz and Beech-Nut each have about 14% of the baby-food market. They argued that their union would spur competition by making them a more formidable foe to No. 1 Gerber Products Co., which has 73% of the market. Heinz shares fell 69 cents to close at $39.38 on the NYSE.